POSTED BY Madhawa Hewawasam ON 13 Oct 2018
Melbourne Housing Market Overview
Melbourne dwelling prices and rents have held up better than expected at this late-stage in a strong cycle. Residential market has clearly softened, and price growth has stalled. These decreasing sales volumes largely reflects a significant decline in investor purchaser activity.
- CoreLogic hedonic price index suggests a sharp deceleration in house prices. Annual growth in hedonic series fell to 0.2% in second quarter of 2018.
- As for units, CoreLogic’s hedonic series is still showing annual growth of 3.7% over the year to second quarter 2018.
- Strong economic indicators will continue to support the residential market. Improved labour conditions, robust population growth and solid retail turnover growth works well for underlying dwelling demand.
- Greater Melbourne rental vacancy declined from 2.2% in July 2017 to 1.9% in July 2018. Median weekly rents for houses grew 4.9% (y/y). Rental yields marginally compressed 1 Basis Point (bps)
Source: JLL (http://www.jll.com.au/australia/en-au/research/757/australia-melbourne-housing-market-overview-september-2018)