As national housing values ​​are stable again, Melbourne is in the dark again, recording growth comparable to that of Hobart
Like Sydney, Melbourne has not had a good year, but the situation may be already changing. The CoreLogic Real Estate Value Index for July 2019 indicates that the capital city rallied sharply during the quarter ended in July, with an overall growth rate of 0.1%, which corresponds to the growth of Hobart, which has dominated the domestic market for some time.
Melbourne maintained its momentum from June through July, as real estate prices rose 0.2%. CoreLogic's director of research, Tim Lawless, cites low interest rates, easier access to credit, post-election market confidence, and tax cuts as the main drivers of positivity.
These factors create a favorable environment for suppliers as demand increases. This demand should help absorb the supply surge in units and support the performance of this market.
"Despite the unprecedented number of new apartments on the market, the unit values ​​of Sydney and Melbourne have consistently outperformed the single-detached sector during the downturn, and this trend continues in the recovery phase. Says Lawless.
As a result of this new stability, with an increase in borrowing and a reduced level of maintenance, buyers seek to capitalize on the effects of the slowdown and divert valuable properties that have had to adapt to the environment according to prices.
"Despite widespread downgrades, the more expensive housing stock has generally seen larger declines, which may give homeowners the opportunity to move to more expensive property," says Lawless.
"The Sydney and Melbourne housing markets show a stronger trajectory in terms of housing value after recording larger declines during the downturn."
There is also a resurgence of Melbourne in the auction market, where activity is again on the rise, with more bidders and a larger crowd at open inspections.
"Overall, there are noticeably fewer bids than last year, but we expect the total number of auctions to increase in the coming months as the market recovers," said Antony Bucello. National Manager at National Property Buyers Victoria.
"We anticipate that the auction liquidation rate will continue to rise and that the investor market will gradually move up a gear in the next few weeks."
BANK PROJECTOR
SEBASTOPOL: Affordable High Growth Suburbs
Situated on the rural and urban outskirts of the prosperous Ballarat region, the suburbs of Sevastopol provide an excellent convergence between affordability, growth and high returns.
The median home price is less than $ 350,000, while homes sell for less than $ 250,000, after growth of about 8% in the 12-month period ending in July 2019 and a double-digit growth over the past five years. Rental yields are also favorable, around 5% for both types of buildings.
Rents jumped 7.1% to a weekly average of $ 300. At the same time, rents increased 4% to a weekly average of $ 260.
Affordability: Real estate prices do not exceed $ 350,000 despite sustained growth
Growth: Housing has a high growth potential, its value having increased by more than 20% in five years
Top suburbs:
Thebarton
,
West Wodonga
,
Melton
,
St Mary
,
Kawana
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