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This is why Victoria has a two-speed housing market 

The two-speed Victorian market 

The state of Victoria has seen the emergence of a two-speed housing market, according to the latest research from Australia's first national property buyer's agency network, BuyersBuyers. 

Pete Wargent, the co-founder of BuyersBuyers, said that 'the pandemic has encouraged homebuyers and renters alike to seek more space while eschewing share-houses and the high-density and high-rise tower blocks of the Central Business District of Melbourne". 

"While houses in some desirable Melbourne suburbs and especially regional locations recorded exceptional price growth over the past year, at the same time some sectors of the unit market are struggling and have experienced falling prices and rents", Mr Wargent said.  

"Oversupply has been an issue for some time in the inner-city unit market of Melbourne in particular, and this has been reflected in weakness in price performance". 

Strength in detached houses 

House price growth has been spectacularly strong in regional housing markets over the past year, such as on the Mornington Peninsula and in Geelong.  

Mr Wargent of BuyersBuyers said, "some suburbs in Melbourne have also recorded strong price growth for detached houses, albeit nothing like as strong as seen in the most robust regions over the past year.  

Figure 1 – Strong annual price growth