Coronavirus recovery: Melbourne battler suburbs, regional cities tipped to rebound fastest

Battler suburbs are tipped to lead Melbourne’s property market recovery while traditionally bulletproof blue-chip pockets trail behind.
Outer suburbs Braybrook, Carrum, Kings Park and Frankston will rebound better than the city’s typical top performers after the pandemic, industry experts predict.
CoreLogic head of research Tim Lawless said “different factors at play” meant affluent areas like Abbotsford and Kew East, which had the city’s largest price gains three years after the Global Financial Crisis, would not rise as quickly to the top after this downturn.
RELATED: Coronavirus: Regional Victoria property markets hit by ban
Coronavirus: Very few Victorian tenants have secured rent reductions
Coronavirus: Tradies will abandon Vic as building economy plunges over next two years
1/6 Rigby Street, Carrum is for sale.
26 Lawn Crescent, Braybrook is under offer.
“In most cycles, the top end of the market tends to lead a downturn and the commencement of the growth cycle,” Mr Lawless said.
“We saw through 2012, and then at the beginning of last year, that the top end drove the growth … but I think if we are in a situation where we do see a lot of (first-home buyer) incentives, it could disrupt that normal pattern.”
He said first-home buyers eligible for government support would boost demand for affordable pockets like Braybrook, Heidelberg West and Kings Park, while lifestyle perks would attract people to Carrum and Frankston.
CoreLogic head of research Tim Lawless.
23 Brunei Cres, Heidelberg West sold for $682,000 in May.
Full Circle Property Advocates director Rob German said “satellite cities” like Frankston and Geelong were set for even more demand in years to come.
“These are areas where all services are available and they connect buyers really well to the southeast and west, where a lot of first-home buyers may have family,” Mr German said.
“People looking to spend $1.2m in the southeast can go out to Frankston South and spend about $800,000 to $900,000 on the same type of property.”
6 Merlin Court, Frankston sold for $450,000.
Frankston’s real estate market is expected to bounce back. Picture: Wayne Taylor
Craigieburn, Mickleham and Roxburgh Park in Melbourne’s north, and Clyde and Cardinia in the east, would also attract plenty of attention in the future, he added.
“In 2008 people still had a major need to be in the inner suburbs to have good access to their workplaces, but with huge growth in IT and communication people don’t have that same need anymore,” he said.
“It’s going to shift our thought patterns on where we need to live.”