Most individual capital cities recorded a rise, however, a 3.1% gain in Melbourne was a significant driver for the strong monthly result across the combined capitals.
Melbourne appears to be benefitting from consistently high population growth which is creating strong demand for housing, as well as consistently high jobs growth and more affordable housing options relative to Sydney.
Across the combined capitals, the gross rental yield on a dwelling is now 3.1% with the lowest yields in Melbourne (2.7%)
The Melbourne housing market has been quite resilient to a slowdown despite higher mortgage rates and tighter credit policies.
Melbourne dwelling values were up 3.1% over the month of July and they’ve increased by 15.9% over the past 12 months.
That’s the highest annual growth rate of any capital city.
While the headline figure for Melbourne is certainly strong, the figure hides a significant performance gap between houses and units.
While house values are up 17.2% over the past year, unit values are up by a severely slower pace of 4.%.
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