All signs point to a turnaround for the Melbourne real estate market, with Melbourne property prices recording their second consecutive month-on-month rise in July.
Not only is Melbourne Australia’s fastest growing city, but it’s also one of the fastest-growing large cities in the developed world, with its population likely to increase by about 10% in the next four years. In the coming months, Melbourne property growth will be driven by a strong economy, jobs growth and the city’s booming population.
How are Melbourne property prices tracking?
Overall, property values in Melbourne increased by 0.2% over July, according to CoreLogic’s Home Value Index for July 2019. This takes the annual decline in Melbourne housing values to -8.2%, an improvement on the recent low of -10%.
Units are leading the charge in the Melbourne property value recovery, posting a month-on-month increase of 0.4%, while houses were up by 0.1%. The most notable improvement in values was seen across the most expensive quarter of the housing market.
CoreLogic head of research Tim Lawless said in a statement that the strong performance of Melbourne properties in the upper price quartile is reflective of the city’s relatively expensive housing and a more pronounced turnaround after a strong dip in prices.
“The stronger result across the upper quartile partly reflects the fact that Sydney and Melbourne housing values are more expensive relative to other cities,” said Lawless, “but also that the middle to upper end of the Sydney and Melbourne housing markets are showing the stronger trajectory in housing values after recording deeper declines during the down phase.”
“Values for higher density dwellings are generally lower,” said Lawless, “however we may see some dampening of unit values in coming months across those precincts where supply is elevated as the large number of high-rise off-the-plan apartment sales moves into the re-sale market.”
Regionally, Melbourne’s Inner City and North West have seen strongest price growth over the past quarter, with median values increasing by 6.5% and 4.0% respectively.
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Source: Domain House Price Report, June Quarter 2019
Historical Melbourne property prices: 2014 - 2019
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