Melbourne has finished November with the the lowest rental yielding market for houses, averaging 2.8%.
The soft performance across the combined capital city reading was attributable to a 1.5% fall in the Melbourne index, while all other capital cities recorded a positive month-on-month result.
Delving into the Melbourne property market results in more detail showed that unit values were down a larger 3.2% in November.
While Melbourne house values declined by 1.3% over the month.
The highest annual growth rate is evident in Sydney and Melbourne where dwelling values are now 13.1% and 11.3% higher respectively, reflecting a steeper upwards trajectory in growth over the second half of the year.
Disaggregating this growth figure highlights the diversity in market conditions with Sydney and Melbourne at one end of the spectrum experiencing an increase in dwelling values over this period of 67.3% and 46.3%
It appears that higher unit supply is progressively weighing down the capital gains across Melbourne’s unit sector.
With annual capital gains tracking at 3.9% for Melbourne units compared with a 12.2% annual gain in Melbourne house values.