Prolonged lockdowns have done little to dampen property price growth with CoreLogic figures revealing prices are continuing to increase in both NSW and Victoria despite being under strict stay-at- home orders.

Hesitancy from vendors to list their properties for sale during the lockdown periods has increased competition for a smaller pool of properties and is leading to price increases.

CoreLogic head of research Tim Lawless predicts listings will continue to fall in Melbourne particularly while physical inspections of properties are banned. While listings might be down, transaction numbers have remained stable.

Lawless expects price growth to slow once lockdowns end and more people list their homes for sale. “You wouldn’t expect housing values to continue rising at this pace for such an extended period of time,” he says. The imbalance between supply and demand has resulted in national property values increasing by 16.1% in the 12 months to 1 August.