Data shows that bigger homes are in high demand in Melbourne in 2015
Data from the Real Estate Institute of Victoria suggests that bigger homes are in higher demand in Melbourne in 2015. Capital gains (as a percentage) for larger homes (4 bedroom or 3 bedroom houses) have been greater than for smaller properties across inner and middle Melbourne. The increased demand and prices for larger properties also applied to apartments in those areas.
The exception was one-bedroom apartments in outer Melbourne reflecting a shortage of supply of this type of property and increasing interest from investors in those areas.
The trend towards high demand for larger homes is not a new trend. This is despite the trend of a decreasing number of people per household in Australia. This is on top of Australia already has a one of the largest average home sizes, compared to other countries.
Higher demand and higher prices for larger homes in Melbourne mean larger mortgages
With property prices on the rise in Melbourne, people’s mortgages will be getting bigger. The Feb 2015 Reserve Bank of Australia (RBA) cash rate cut has resulted in many lenders reducing their interest rates but not all by the same amount. If you would like to investigate if your home loan is still competitive, please contact an Oak Laurel mortgage broker in Melbourne for a free home loan check-up.
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