Melbourne property market correction will hit houses, not apartments: CoreLogic Moody's
Melbourne’s property market is tipped to ease in 2018 with the correction hitting harder in the detached housing market rather than apartments.
The CoreLogic-Moody’s Analytics Australian Home Value Index Forecast, 2017Q1 said although the rise of housing supply has been more prolific in apartments—for every house, 1.23 apartments were approved between 2013 and the end of 2016—detached-home values have grown significantly more than unit values.
"House values in the city have increased 47 percent over the past four years, while apartment values have risen a relatively muted 23 percent," it said.
"Home values in Melbourne remain buoyant; prices rose 12.8 percent from January 2016 to January 2017.
"However, unit prices rose 2.8 percent during the same period.
"This situation suggests that the coming supply of apartments has already dampened value growth.
"Apartment values will rise 3.4 percent in 2017, and a period of stagnation will follow through to 2020.
"Detached-home values are expected to rise 7 percent in 2017, followed by a steady decline through to 2020."