10 percent price growth for Melbourne houses predicted by Greville Pabst

10 percent price growth for Melbourne houses predicted by Greville Pabst
10 percent price growth for Melbourne houses predicted by Greville Pabst

The executive Chairman at WBP Property Group Greville Pabst says that Melbourne's median house price growth will rise by another 10 percent this year.

"Not unprecedented but watching stock being absorbed so quick in late spring and numbers at opens in 2017, I believe median house price growth should forge another 10 percent this year," he has advised.

"With two caveats," he added.

"Interest rates and unemployment."

Meanwhile Mr Pabst expects the property market to continue in the seller’s favour this year, particularly for houses.

“Given a lot of the stock has been mopped up, I think there will be pent-up demand when this market opens up again in mid-February.”

Mr Pabst says the market would be dependent on economic factors.

“A rise in unemployment or interest rates might take a bit of wind out of the sails,” he told the Herald Sun.

“There’s also the Trump factor, which could mean we have to put up interest rates faster, or it could mean a policy decision that has an impact on our economy.”

His tip was established apartments could grow up to 5 per cent because there was limited supply, with a similar outcome for single-level villas.

As for houses, he said established homes within 10km of the CBD and less than $2 million would “remain one of the safest bets” this year.

He predicts that prices could grow because homebuyers were fighting to buy within that range.

Similar growth could be expected for property less than $2 million up to 20km from the CBD, where listing shortages and affordability would drive prices in the area.

Mr Pabst forecast the value of resold modern apartments could fall about 6 per cent.

“Supply in certain postcodes including Melbourne, Docklands and Southbank and the in-built incentives will mean it might take up to six years for many of these investments to break even."

His WBP valuation group is known as one of the most bearish among the inner Melbourne valuers with their off the plan bank valuations.

Melbourne Housing Market

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