The Australian property market has seen a downturn over the past 18 months, the biggest since the 1980s. However, this downturn looks to be over in Melbourne with figures released last week showing a rise in the prices of both houses and units.
According to Domain’s House Price Report for the June quarter the median price for a house in Melbourne over the June quarter was $818,237, a rise of 0.3 per cent. For the same period, the price of a unit was %501,009, a rise of 2 per cent.
Domain economist Trent Wiltshire believes there will be modest growth for next few quarters but that there “is a clear sign that the market in Melbourne has bottomed out”.
As with all ‘medians’, there are differences across different suburbs; house prices in the inner east (around the suburbs of Kew & Balwyn) and the north-east region (including Whittlesea) saw a fall. The unit market was more consistent, with only the north-west area falling.
Since the election result in May, there has been more interest in the property market, with sentiment more positive and higher attendance at ‘open-for-inspections’. Auction clearance rates are also at their highest point for 18 months. Add to this the lowest interest rates we have ever seen and you can see why buyers and investors are returning to the market. There is also a strong positive feeling as we head toward the spring property market, traditionally a time for high sales numbers.
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