Melbourne Postcode Stigma

So I’m one of those walking dead Melburnians who has been locked up yet again. If you refer to the active case chart im the one in lockdown with 2 cases, of which the postcode actually falls into a different LGA (true story).

Anyway enough whining
What’s people’s thoughts about any potential effect this style lockdown could have on local property markets?

I don’t believe much given it’s such a small window but we do have new found stigma attached to these suburbs. And obviously selling property the next 4 weeks in these areas will be far more difficult than non locked down suburbs.

The biggest short time issue I see is the effect on local business. I have already spoken to a few local businesses who likely won’t survive second lock down. The cafes and restaurants are far worse than before given regulars won’t come now and why would they when they can sit in for a nice meals 30m away.
These suburbs are going to have increased commercial vacancies is a certainty and how long it takes to absorb these may play into the local residential market.

 

Its all shops I think. I'm not long back in from Northlands shopping centre in the city Northern suburbs....its not my closest SC but it my largest with the major supermarkets altogether hence I'm a regular visitor. I've never seen it so quiet at mid-day on a weekend day. With no sitting permitted, several of the foodcourt outlets are closed. Who knows if this is temporary or a more permanent situation or if shopping habits have changed because WFH means they are able to get to the shops during the week when it is quieter.

 

Wouldn't say it's new but more it's being brought up again. Take care all

 

I believe it will certainly fuel those long held stigmas and have an impact in short term! We recently bought nearby one of these postcodes and I have already gotten comments from some friends who live in SE around "told you so".
That said I wouldn't live elsewhere

 

There will always be a reasonable portion (particularly younger people) who don't really have any opinion on a large number of suburbs in the city they live.

For people who had no frame of reference for those suburbs, this is what they'll think of - so I do think it will have some impact.

Balance that off with people like myself, who was very keen to buy into some of the inner north suburbs (around Brunswick) so will be closely following any fallout. I think there will be lots of people in similar boats, so I don't think it will have a major impact.

 

+ Immigrants. Most of the people moving from South East Asian countries wouldn't really care about these stigmas!

 

Funny Story! When I first moved to Melbourne - I got a free apartment from my company for 3 months in St Kilda. My first impressions were that this must be the most expensive place in Melbourne! And then I spoke to my colleagues.

 

The funny thing is that the rest of Australia will probably open the borders to Non-Australians (Kiwis) first before letting in fellow Australians in Victoria.

How do you guys interpret the Commonwealth Constitution?

Section 92. "... trade, commerce, and intercourse among the States, whether by means of internal carriage or ocean navigation, shall be absolutely free."

 

I believe Section 92 is largely about import duties and other restrictions on trade between states. Pre-federation some states were protectionist while others were free trade. This clause was later used to get around the levy placed on intra-state road transport (to protect the railways) by carting goods just across a border and then shipping them back. Eg cart from Sydney to Wodonga and the back to Albury.

 

Well this topic was short lived.
Now it’s just Melbourne stigma.

 

But how about the word "intercourse" in the same section?

 

Be interesting to watch clearance rates over this period???

 

My mother in law just settled her divorce and took a property that she wants to sell ASAP to purchase where she wants.

Under recommendation from her agent who is one of the best in the business in the local area she is not listing until late September.

I think this is going to be pretty common.
If you combine lockdown with the typically slower winter period it doesn’t make much sense selling right now.

If Victoria can get through the next 6 weeks down to zero cases, if we can see through winter and into sunshine in spring, and if as expected the government handouts and mortgage feeezes stay around a little longer then there Callie be a significant amount of pent up demand and optimism in the Victorian market.
Ecspecially if other states don’t have a second wave and evidence shows how their economies are faring.

 

I think it makes sense to wait.

Hope Melb bounces back