The Melbourne
property market was an absolute bolter in 2009, with
a 15.6 per cent increase in property values through
2009 despite the worst that the GFC could throw at
Victoria. This standout performance has seen median
house prices rise to $499,000*, with units not far
behind at almost $411,000.
Strong demand has continued through the first quarter
of 2010, with exceptionally high auction clearance
rates being a characteristic of the opening quarter.
However, it is very unlikely that this year will
be able to match the tremendous run though 2009,
and a more modest 6 or 7 per cent increase would
seem more likely.
That said, Melbourne investment property is purchased
for the long run. The city remains a magnet for new
arrivals to Australia, which is the primary driver
of accommodation demand. Further underpinning future
prospects are major infrastructure improvements and
a well-managed, diversified economic base. These factors
provide property investors with strong prospects in
terms of capital growth, as well as positive rental
increase potential due to tight availability and overall
stability in terms of employment.
Weekly rentals remained flat through 2009 despite the
exceptional growth in property values. The current
median weekly rent for a house is $365, with units
marginally behind at $348.
Having been at the forefront of the property cycle
through 2009, it is only natural that this year’s growth
will reflect a slower pace. However, the fundamentals
are all in place for property investment in Melbourne,
the capital city of a powerful and well-balanced state
economy.
*Data source in this posting: RP Data and Rismark International.
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