Melbourne Property Value Rises in October
While the housing affordability pressures have been most evident in Sydney, Melbourne is still experiencing positive growth. The median value of houses and units in Melbourne rose 6.6% in the past year. In contrast, Sydney’s house and unit values fell by 1.9% and 3% in the last year. Despite the drop in the March housing values, Melbourne has been growing much faster than its peers. Her response Melbourne Property Valuers Metro – Melbourne Property Value
A cooling market has given buyers more leeway to negotiate. The pace of rental growth has slowed down. A lack of international students has slowed down the rental market, particularly in the city. However, with international student numbers returning, Melbourne’s rental market is expected to benefit the most. Moreover, a lack of supply in the market is causing rental prices to increase in most suburbs. As a result, more landlords have started to turn to the short-term leasing market.
Although Melbourne’s property market has undergone typical property cycles, the gap between house prices and apartments is currently the largest since the early 2000s. As a result, many first home buyers will probably be forced to purchase more affordable homes in the future. Despite the high demand for property, the supply of investment-grade properties and A-grade homes is still lagging behind.
Melbourne’s house and unit prices rose 0.4% in March and 3.2% in the past quarter. These gains are consistent with the country’s strong recovery and employment growth. However, certain sectors of the housing market will continue to struggle for a while. For example, apartments in high-rise towers and off-the-plan apartment developments are likely to fall out of favour in the future.
Melbourne and Sydney were the two cities with the fastest-rising housing values in October. The top quartile of these two cities rose by 7.1% and 5.9%, respectively, while the lower quartile rose by 0.7%. The other capital cities had a more mixed performance. While Sydney and Melbourne were leading, Adelaide and Brisbane recorded the highest rolling three-month change of any city in the country, while Canberra and Hobart posted the highest three-month rises in the past year.
As a result, Melbourne’s property market continues to experience growth, albeit with a slowdown in the future. This is mainly due to increased competition in school catchment zones. House prices in some Melbourne school zones have increased by over 40 per cent in the past year. These house prices are being driven by fierce competition for primary and secondary schools.