Melbourne apartment prices rising faster than houses in March 2017 quarter: Domain

Melbourne apartment prices rising faster than houses in March 2017 quarter: Domain
Melbourne apartment prices rising faster than houses in March 2017 quarter: Domain

Melbourne apartment price growth leaped ahead of house price growth in the first three months of the year, as unit values surged 4.6 per cent in the country's second-largest city.

House prices in the Victorian capital jumped 4 per cent in the March quarter, Domain Group chief economist Dr Andrew Wilson's latest State of the Market Report showed.

Melbourne's growth outdid Sydney, where house prices gained 2.8 per cent and units just 1.3 per cent.

"Melbourne is the clear top performer and will continue to stay there," Dr Wilson told Domain. 

Melbourne houses will rise 10 per cent this calendar year and units 7 per cent, while Sydney houses will gain 7 per cent and units 3 per cent, Dr Wilson said.

He said the strength of Melbourne apartment prices was surprising and indicated that despite some falling in off the plan value, the largely overseas investors who had purchased them were holding on to them, Dr Wilson said

"We're not seeing any volume of sales in the CBD market," he said.
 
"That market is in a holding pattern, particularly from international investors who've purchased. They're not putting them onto the market for rental or sale and the growth is coming from suburban units."
 
Part of Melbourne's rise was due to the July elimination of stamp duty for first home buyers.
 
The latest report puts Sydney's median house price at a record $1,151,000. Melbourne sits at $843,000.
 
Melbourne’s unit median sits at a record $494,000. Sydney's unit median sits at $717,000.
 
In Brisbane the unit prices are going backwards and have seen a fall of 3.8 per cent to $376,000, the biggest drop since 2000.
 
AMP Capital chief economist Shane Oliver said higher prices meant people had to borrow more, which added to worries about the level of household debt.

“They’re certainly not welcome numbers,” Oliver said.

“The only people who this is good news for are those who are looking to sell … and move out of Melbourne into regional areas or to cities and states which haven’t seen the gains in recent times.” 

 

 

 

Tags: 
Melbourne Domain

Community Discussion

Be the first one to comment on this article
What would you like to say about this project?