Melbourne's autumn to produce 2015's best price growth: Andrew Wilson

Melbourne's autumn to produce 2015's best price growth: Andrew Wilson
Melbourne's autumn to produce 2015's best price growth: Andrew Wilson

The Melbourne housing market weakened over 2014, down by an underperforming local economy, according to the Domain Group senior economist, Andrew Wilson.

It was reflected in Melbourne recording price growth of 4.1% over the year, well down on the 10% recorded over 2013.

Melbourne's autumn to produce 2015's best price growth: Andrew Wilson

Source: Domain Group

But Melbourne has commenced 2015 in "solid to strong fashion" with activity in the local auction market clearly tracking ahead of the weaker results recorded over late spring and early summer in 2014. 

"Interest rate cuts are fuelling increased confidence with inner suburban regions particularly active," Wilson said.

Melbourne’s mid and upper price ranges, and eastern suburban regions in particular, were the best performers in 2014 with these sectors expected to continue to prove resilient through 2015 as aspirational buyers remain active. 

"Lower interest rates through 2015 will offset weakening economic activity although budget priced outer suburban markets are likely to remain subdued," Wilson said.

"The prospect of a stronger stock market through 2015 will continue to activate prestige buyers. 

"This market sector reported a solid 2014."

Melbourne's autumn to produce 2015's best price growth: Andrew Wilson

Source: Domain Group

Wilson said overall Melbourne house prices were set to record similar growth in 2015 compared to 2014. 

"The prospects for a solid autumn season and a moderate spring season continue to be dependent on a stable and improving economic environment," he forecast.

"The Melbourne median house price will increase by between 3 and 5 percent over 2015 with the autumn season likely to produce the best results."

Melbourne's autumn to produce 2015's best price growth: Andrew Wilson

Source: Domain Group

Sales this week in Melbourne's eastern suburbs highlight the emerging depth of prestige buyers.

Jock Langley at Abercromby's has sold 12 Washington Street, Toorak on the back of a major pre-auction offer. The 2001 house in Paul Bangay gardens had been quoted at $6 million plus for its March 17 private auction.

Late yesterday several parties gathered inside 106 Stanhope Street, Malvern (pictured above) for a private auction, with it selling under the hammer at around $1 million above the $4 million plus lower guidance expectations. 

Midlothian, the 1891 Malvern property had been renovated by the current vendors by Rosenthal, Munckton and Shields in 1997 and then further enhanced by the addition of a superb pool-side studio, with sub-floor heating, from the same architects in 2006.

Langley says just about every premium offering now has multiple buyers running on it, which is a sign of the depth and heat in the market.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of our authors. Jonathan has been writing about property since the early 1980s and is editor-at-large of Property Observer.

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