Melbourne: Australia's Most Affordable Major City Housing Market
Melbourne: Australia's Most Affordable Major City Housing Market
6
Recent data from PropTrack highlights Melbourne as the most affordable major capital city in Australia for housing, as it continues to record the slowest dwelling value growth compared to other state capitals.
Over the year leading up to August, Melbourne's property prices increased by merely 2.1%, starkly overshadowed by the growth rates in cities like Sydney, Brisbane, Perth, and Adelaide.
Since the onset of the COVID-19 pandemic in March 2020, Melbourne's dwelling values have shown a modest 20% increase. In contrast, increases elsewhere in Australia include 42% in Sydney, 96% in Brisbane, and over 90% in both Perth and Adelaide. Consequently, Melbourne's median dwelling value now stands at $830,000, making it the most affordable among Australia's five major capitals, and significantly lower than the combined average.
This affordability is a contrast to Melbourne housing trends over the last two decades. However, experts forecast a potential shift. KPMG predicts robust price growth for Melbourne, expecting it to outpace the national average in 2026 with an anticipated growth rate of 6.6%, driven by escalating interest from savvy investors.
The city is attracting high-income investors beyond its borders, particularly from Western Australia. Buyer advocate Arin Russell notes that both first-time buyers and seasoned investors are seeking opportunities in Melbourne, keen to invest before an expected market upswing.
Despite the economic challenges facing Victoria, including significant state debt and rising crime in Melbourne, the city's current affordability presents a unique opportunity for buyers. As KPMG's chief economist Brendan Rynne suggests, the unit market might see the most considerable gains due to its favourable affordability.
As Melbourne prepares to potentially lead the national housing price growth, its current market presents an attractive proposition for bargain hunters eyeing considerable returns in the near future.
The latest release of the US jobs opening data and the Federal Reserve's Beige Book indicates signs of a slowing American economy. While reasons range from the current government's economic policies to broader market challenges, the outcomes have intrigued Wall Street and bond markets alike. This weakening scenario has set a stage where the Fed might consider cutting interest rates sooner than expected, contributing to a market rally. - read more
Recent data from PropTrack highlights Melbourne as the most affordable major capital city in Australia for housing, as it continues to record the slowest dwelling value growth compared to other state capitals. Over the year leading up to August, Melbourne's property prices increased by merely 2.1%, starkly overshadowed by the growth rates in cities like Sydney, Brisbane, Perth, and Adelaide. - read more
Entering the sphere of commercial property financing can often present a complex challenge for small business owners. In today's market, understanding the nuances of securing the necessary capital to invest in property can make the difference between the success or stagnation of a business. - read more
Australia's dynamic SME landscape is ever-evolving, constantly presenting new opportunities and challenges for today's entrepreneurs. Growth is not just a goal but a necessity for these small and medium enterprises to thrive in the competitive market. As these businesses stand on the cusp of expansion, it becomes critical to recognize the indicators for growth and to approach this next stage with a robust strategic plan. - read more
Need Help Finding a Loan?
All finance quotes are provided free (via our secure server) and without obligation. We
respect your
privacy.
Knowledgebase
Portfolio: A range of investments held by an individual or institution.
