Melbourne apartments to bear brunt of price downturn: CoreLogic Moody's

Melbourne apartments to bear brunt of price downturn: CoreLogic Moody's
Melbourne apartments to bear brunt of price downturn: CoreLogic Moody's

Despite expectations of steady income and jobs growth in Melbourne, house values are forecast to decline more than 6 percent from the end of 2016 through to early 2020.

However, the declines are likely to be confined mostly to apartments in comparison with detached dwellings, according to CoreLogic-Moody’s Analytics Australia Home Value Index Forecast.

House values in Melbourne reached a new high in April, but the outlook was described as "less positive."

The current momentum will enable values to gain 7.1 percent this year, but the effects of high levels of incoming supply—200,000 dwellings approved for construction from 2013 to 2015—will depress house values through to 2020. 

CoreLogic-Moody’s Analytics Australia Home Value Index Forecast, suggested house values nationwide are expected to rise 6 percent this year and 4.1% in 2017.

Much of this rise will be driven by continued gains in Sydney, where values are forecast to rise 7.3 percent this year, or about half the 14.9 percent rise in 2015.

Melbourne’s market is nearing a peak and could be entering a slump because of high incoming supply.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

Tags: 
Melbourne Home Values

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