After falling more than 11% in 2018-19 the Melbourne property market has made the strongest recovery in modern history.
In a recent housing update, Westpac gave the following summary plus forecasts for the Melbourne real estate market…
Victoria’s price recovery has gained strong momentum with increases running at a double digit annual pace over the last 3mths and prices having now recovered over half of their correction.
However the detail is still more mixed with price performances uneven, turnover at low levels and listings showing a signifi cant overhang of unsold units.
Housing–related sentiment points to more strength ahead although the pace of the rebound may moderate.
The price detail shows a varied performance across segments and sub–regions, some of which reflects the more pronounced corrections for houses and top and middle tier properties.
Melbourne unit prices are seeing better annual price gains but performances across price tier are now fairly even on an annual basis.
The Victorian Consumer Housing Sentiment index has continued to lift over the last 3mths but is now being entirely driven by rising price expectations.
As with NSW, assessments of ‘time to buy’ have weakened back to below average levels suggesting affordability pressures are starting to re-emerge (Melbourne prices are now just 4.5% below their previous peak).
Listings metrics show some improvement with sales mostly outpacing new listings in recent months and the overhang of unsold stock down 18% from the peak at the start of the year.
However, the overhang of units remains high and is declining more slowly.
The stronger price performance of units overall may indicate a ‘two tier’ market with few properties transacting in the weaker tier.
If you’re looking at buying your next home or investment property here’s 4 ways we can help you:
Sure our property markets are improving, but correct property selection is even more important than ever, as only selected sectors of the market are likely to outperform.
Why not get the independent team of property strategists and buyers’ agents at Metropole to help level the playing field for you?
We help our clients grow, protect and pass on their wealth through a range of services including:
- Strategic property advice. – Allow us to build a Strategic Property Plan for you and your family. Planning is bringing the future into the present so you can do something about it now! Click here to learn more
- Buyer’s agency – As Australia’s most trusted buyers’ agents we’ve been involved in over $3Billion worth of transactions creating wealth for our clients and we can do the same for you. Our on the ground teams in Melbourne, Sydney and Brisbane bring you years of experience and perspective – that’s something money just can’t buy. We’ll help you find your next home or an investment grade property. Click here to learn how we can help you.
- Wealth Advisory – We can provide you with strategic tailored financial planning and wealth advice. Click here to learn more about we can help you.
- Property Management – Our stress free property management services help you maximise your property returns. Click here to find out why our clients enjoy a vacancy rate considerably below the market average, our tenants stay an average of 3 years and our properties lease 10 days faster than the market average.
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.