As the Melbourne market continues its descent, the suburbs of the Victoria area move in the opposite direction
Investors in Melbourne may announce a sigh of relief, the decline in real estate prices fades. According to CoreLogic data, values ​​fell only 0.3% in May 2019 – the slightest drop in a year.
Auction clearing rates in June 2019 were about 60%, a more comfortable result than observed for some time. This improvement contributed to a stronger overall performance for the domestic market.
The measures taken to solve the problem of borrowers who meet the loan financing service requirements are ready to stimulate market demand again, as well as lower interest rates.
"One of the factors contributing to a lower activity in the housing market has been the difficulty of accessing credit. While various other policies continue to limit housing credit, a more practical assessment of the borrowers' service capacity is certainly a positive factor for housing market demand, "said Tim Lawless, head of research at CoreLogic.
"Lower interest rates may not provide the same level of stimulus as in the past because of tighter credit policies, but there is no doubt that lower rates will continue. To exert a positive influence on the housing market. "
Despite the cooling of the market, Real Estate Investar's Managing Director, Clint Greaves, notes that Victoria remains one of Australia's most popular neighborhoods.
"Given the much-publicized cooling caused by the Sydney and Melbourne markets, we expected to see more research into investment opportunities in regional markets and in other states; however, with few exceptions, this has not been the case, "he says.
"The regional Victorian markets are a good example of areas in which we are seeing strong interest and high levels of investment research outside of the main markets of Sydney and Melbourne."
The demand in the regional pockets is evident thanks to the improved performance of areas such as Geelong and Ballarat. CoreLogic's quarterly regional market update for March 2019 shows that home values ​​rose 0.4% from January to March 2019, while unit prices jumped 5.4%.
"Metropolitan prices definitely seem to have peaked, but regional cities, especially those within a reasonable distance of Melbourne, seem to be doing well," said Ian Hosking Richards, general manager of Rocket Property Group.
SUBURB OF WATCH
ORMOND: The units remain stable
Located just 12 km from Melbourne's central business district, the suburbs of Ormond experienced a period of strong growth before prices began to weaken in recent years.
The housing market held up, with values ​​remaining unchanged over the 12-month period ending in May 2019. However, it was different for houses: prices fell by 20.1%, although the median value remains high at more than $ 1 million.
Housing also performed better than houses in terms of rental market, with rents increasing 2.6% to an average of $ 390 per week in March 2019. Rents also increased, but slightly less. ; they increased 1.6% to bring average rents to $ 630 per week.
Units: Units still outperform houses in price and rent
Price: After a decline of 20%, the median value of a house in Ormond is still greater than $ 1.2 million
Top suburbs:
Westmead
,
tweed is heading south
,
Ferntree Gully
,
Thebarton
,
Mt Lawley
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