Melbourne’s property market – strong but still accessible
Melbourne’s property price growth is outpacing the rest of Australia’s capital cities, however there is still outstanding value to be had for buyers and investors. That is the headline message from the September quarter property report recently released by the Domain Group.
The city’s stranglehold on the title of the world’s most liveable city, robust economy and strong population growth is bringing out buyers in force. While property prices in Melbourne are very strong, the good news for both investors and first home buyers is that property in the Victorian capital is still a much more affordable than in Sydney.
Melbourne’s thriving apartment market in particular is proving a gold mine for new buyers who are looking to break into the market at a reasonable price.
In the three months to September, Domain Group reported that Melbourne’s median apartment price increased 4.5% to $446,779 – still well below Sydney’s median apartment price of $685,865.
This figure follows on the back of previous strong quarterly results, which combined have seen Melbourne’s annual unit median price grow 5.5%, compared to just 0.90% for Sydney and -3.8% in Brisbane.
Domain Group also reported that Melbourne’s median house price grew 3.1% for the September quarter to $773,669 and 9.1% for the previous 12 months, more than four times Sydney’s result and almost triple Brisbane’s.
The latest property growth cycle, which began in June 2012, has seen capital city home prices rise 41.3%. Although property experts are predicting the market to cool in the near future, at the moment the combination of record low interest rates, firm employment levels and strong population growth is undoubtedly convincing a lot of people, investors and would be owner-occupiers that it’s a great time to enter the market.
And with Melbourne leading the way, more savvy buyers are turning their attention to the world’s most liveable city.
Figures sourced from Domain Group’s House Price Report