Melbourne house values have risen by eight percent compared with the three-point-two percent lifting unit values.
The slower rate of growth in unit markets can probably be traced back to high supply levels and deteriorating confidence about the prospect of capital gains across the Melbourne unit sector.
The unit markets that show the highest risk profile tend to be both existing and new projects located in the supply epicenters of the Melbourne CBD as well as some of the CBD fringing suburbs such as docklands and south bank.
Melbourne has also seen the annual rate of growth slip back to below 10 per cent, with the July indices showing a respective 9.1 per cent and 7.5 per cent capital gain over the past twelve months.
Potentially, as buyers gain some leverage in the market and vendors become more flexible in their pricing expectations, this will assist in alleviating price pressures from the hottest markets such as Melbourne.
Melbourne clearance rates are tracking in the mid 70 per cent range.
The rate of value growth has slowed over recent months the two largest and most expensive capital cities city have continued to record relatively rapid rates of value growth.
With investment in the marketplace still a large source of mortgage demand it will be important to monitor investment appetite for housing over the coming months.
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National Housing Market Update [Video] – August 2016