Melbourne has lagged behind other capitals in terms of annual price growth, but it looks like it's poised to catch up this year, an expert predicts.
Michael Yardney, director of Metropole Property Strategists, said the city is likely to make a double-digit gain this year.
"While home values ??in Melbourne have suffered due to its prolonged foreclosure, which severely affected market activity in 2020, since late October the Melbourne property market has rebounded strongly," said he declared.
CoreLogic figures show that the median annual house price in Melbourne rose 0.7% to $ 736,620. This annual gain is significantly lower than Sydney's 5.4%.
"There is still a lot of growth left, as Melbourne property values ??have just reached their pre-pandemic levels and are set to set new peaks, which means that & # 39; They will only now reach the peak levels of 2017, "said Yardney.
A recent report from ANZ Bank predicted a 16% gain in house prices in Melbourne this year. A further 6% growth is expected by 2022.
However, some segments of Melbourne might not perform as well as others. Yardney said the downtown apartment and high-rise apartment markets are expected to underperform.
"Currently I am concerned about a large number of poorly built downtown apartments on the market or scheduled for completion. Many, in fact, most are bought by investors foreigners and how likely they are to become the slums of the future, "he said." Just to clarify: I would avoid this segment of Melbourne's real estate market. "
Top suburbs:
queens park
,
bendigo
,
nundah
,
The Pelvis
,
sunshine
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