Victoria’s 15 year property market scorecard: Simon Pressley's hits and misses

Victoria’s 15 year property market scorecard: Simon Pressley's hits and misses
Victoria’s 15 year property market scorecard: Simon Pressley's hits and misses

$224,387 – that was the price of a typical house in Greater-Melbourne at the start of this Century. Scary, isn’t it? So, how has Melbourne’s property market performed since then and which have been Victoria’s best performers over the last fifteen years?

With a population of 4,085,849, Greater-Melbourne is fast catching up to Sydney. The 2.0% average annual population growth rate is above the 1.7% national average.

Melbourne’s median house value has increased from $224,387 to $683,599 during the fifteen year period. 2000-2014, 2001-2003, 2007 and 2010 all produced double-digit price growth.

As impressive as this data sounds, the average annual growth rate of 8.3% per annum is just below Australia’s combined capital city rate of 8.4% over the period.

Propertyology has recently completed an extensive study of the performance of property markets for each of Australia’s 550 local government authorities (LGAs). Given that some locations have higher growth and others have better yields, we’ve ranked the LGA’s from 1 to 550 based on their total return (average annual growth rate plus rental yield).

The regional town of Ararat (median house value $190,000) was Victoria’s best performing LGA and ranked an impressive 27th across all of Australia. And, if that surprises you, you’ll probably be shocked to hear that Ararat’s population actually declined from 11,510 to 11,184 over the last decade. Corangmite and Southern Grampians were equally surprising.

In stark contrast, the highly desirable location of Richmond (LGA of Yarra, median house value $934,000) experienced population growth above the national average yet was ranked 318th in Australia for total property return. ‘Affordability’ trumps ‘population growth’!

The best performing Victorian capital city LGA was Greater-Dandenong which ranked just scraped in to Australia’s Top 20% (98th out of 550 LGAs). The LGA of Knox was next best at 246th.

Victoria’s 15 year property market scorecard: Simon Pressley's hits and misses

 

Every one of Victoria’s Top 10 performing LGA’s are regional locations. 

SIMON PRESSLEY is managing director of Propertyology, a REIA Hall Of fame Inductee, property market analyst, accredited property investment adviser, and buyer’s agent.

Propertyology works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.

 

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Housing

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