Melbourne property prices reach a new high in February 2016
Melbourne property prices reached a new high in February 2016 according to property price data from Corelogic.
Melbourne’s property price rises are ahead of all of Australia’s other capital cities, including Sydney which has seen a decrease in property prices in recent months.
Melbourne’s property price rise trend has been a steady upward trajectory after dipping after the previous maximum in November 2015.
The auction clearance rates in Melbourne also show signs that the market is heating up again with good clearance rates according to Domain.com.au data.
Though the Melbourne property prices have hit a new high, the price rises are slower and steadier than the gains in the recent past that worried Government policy makers. So don’t expect Government banking regulator to require banks and lenders to carry out any further restrictions on investment lending. There is also indication that the participation of property investors is not the main driver in Melbourne’s property price gains.
The restriction of property price gains to the Melbourne market and the cooling of the Sydney property market, where bubble fears were greatest, should still leave the door open for the Reserve Bank of Australia to cut interest rates if needed.
“The Melbourne property market has a good outlook for 2016, probably better than any other property market in Australia.” said Dr Nigel Abery (Ph.D.) Principal at Oak Laurel.
“Melbourne’s property market has good fundamentals, with more people choosing Melbourne to settle in that any other city in Australia” said Dr Abery.
“Melbourne is a great city to live in and that is why thousands of people are moving from other cities around Australia and overseas to live in Melbourne” said Dr Abery.
“Not all suburbs are the same so don’t expect that you will get average gains if you buy in a bad location. I would avoid inner city large high-rise apartments unless you investment horizon is super long term. Alternatively, if you buy a quality property in a good location you may expect to outperform the average price gains.” said Dr Abery.
“Look for suburbs where people high incomes and above average capacity to pay want to live. Convenient locations with good access to transport and amenities such as good schools are likely to continue to attract buyers willing to pay top prices” said Dr Abery.
Oak Laurel Mortgage Brokers – Loans made easy!