Melbourne unit prices holding steadier than houses: Domain

Melbourne unit prices holding steadier than houses: Domain
Melbourne unit prices holding steadier than houses: Domain

Unit prices have been holding steadier than houses in Melbourne, just 5.8% below the peak they reached at the beginning of 2018, according to Domain's latest House Price Report.

The report found, Melbourne house and unit price falls sped up throughout 2018, although so far the downturn has been shorter and less severe when compared to Sydney.

Melbourne house prices fell 2.1% over the quarter and 8.4% over the year to $833,321.

Melbourne unit prices fell 1.8% over the quarter and 4.3% over the year to $479,306.

Melbourne unit prices holding steadier than houses: Domain

Domain Senior Research Analyst, Dr Nicola Powell said: "Restrictions to housing finance have hit Melbourne and Sydney the hardest. However, Melbourne is in better shape than Sydney, as a growing employment sector, lower affordability hurdles and stronger population growth supports the underlying demand for housing.

“Melbourne house prices have now fallen for four consecutive quarters, the last time this occurred was seven years ago. The ongoing falls have resulted in the steepest annual house price drop since Domain records began in 1993. However, it’s worth noting that the downturn follows an extraordinary period of growth, with house prices rising 72.8% in just over five years.

"Houses are 8.4% below the price peak achieved at the end of 2017, with homes now transacting at late-2016 prices.

“Underpinning the strength of units relative to houses is affordability hurdles and lending practices. Factors that have supported demand for housing at the lower end of the price spectrum include a rise in the number of first home buyers, and lending practices designed to reduce exposure to borrowers with a high debt to income ratio.”

Melbourne unit prices holding steadier than houses: Domain

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Melbourne House Prices

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