The Melbourne Property Market
Death, taxes and a never-ending property cycle. Three things of which we can be certain. There is much talk in the media about Australia’s cooling property market and while there’s both pessimism than optimism in these views, it is easy to get carried away with the fear-mongering rife in our news cycles. Remember, media outlets know that bad news is more likely to grab attention than good news.
The reality is that our property market has changed and we are seeing it move into a different part of the property cycle (for more on the property market cycle, see here). The reality is also that we have not seen a massive drop associated with a property ‘crash’.
According to CoreLogic Property Data, Melbourne property prices fell 0.5% over the last year. Given this fall comes after five years of remarkable growth, it is probably time to be cautious … but not panic.
As is expected at this stage of the property cycle, it is the upper end of the market that is seeing the biggest shift in interest.
It is expected that Melbourne property prices will fall a little further – estimates range from 1.5– 3% - this is balanced by a heathy economy and continued jobs growth. It is also offset by the popularity of Melbourne as a place to live – the city has Australia’s strongest population growth.
A recent REIV report named suburbs such as Doreen, Mernda & Roxburgh Park as the hot spots which would provide “opportunities for buyers”. The continued popularity of units over houses means that older villa units that have the potential to be updated and renovated could make an excellent investment. Likewise, boutique townhouse developments in the right suburbs will also be sought after.
Regardless of which part of the property cycle it is, Accrue Real estate have the knowledge and experience to help you make a move into the property market. No hard sell, just solid information and advice. Contact Accrue today to see how we can help.
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