Buying & Selling Success in Melbourne
A Historical Perspective
Historically, Melbourne’s property market has seen median house prices increase by 7.9% per annum and unit/apartment prices by 7.73% per annum over the last 40 years. This long-term trend suggests that investing in Melbourne property has been a wise decision for those looking for stable and robust returns.
Current Market Trends
Despite predictions of a decrease in property values by up to 14.1% in 2023 according to various banks, the Melbourne property market is expected to regain momentum as we move through 2024. Early signs of a boost in confidence among both buyers and sellers, along with strong auction clearance rates, indicate a positive outlook for the future.
Investment Hotspots
Certain suburbs in Melbourne are expected to boom, offering strong rental demand, potential for capital growth, and easy access to amenities. Suburbs like Flemington, Point Cook, and Northcote are among those anticipated to perform well in 2024.
The Bigger Picture
When compared to other major Australian cities, Melbourne offers a relatively safe haven for finances with the potential for excellent long-term returns. However, it’s important to note that the property market is nuanced, and strategic investment decisions should be made with professional advice.
Strong and Diversified Economy:
Melbourne boasts a robust and diversified economy, less reliant on a single industry compared to other cities. This translates to stable employment opportunities, fueling population growth and ultimately, housing demand.
Large and Growing Population:
Melbourne’s population is constantly expanding due to immigration and natural increase. This rising population puts pressure on housing supply, potentially pushing prices up in the long term.
Government Infrastructure Projects:
Melbourne is undergoing significant government investment in infrastructure projects like transport and public amenities. This improves the overall lifestyle and accessibility of certain suburbs, making them more attractive to residents and investors.
Cultural Hub and Livable City:
Melbourne consistently ranks highly in global liveable city rankings. Its vibrant arts scene, multicultural atmosphere, and green spaces make it a desirable place to live, increasing the appeal of its property market.
While the Melbourne property market has faced its share of fluctuations, the overall performance over the past decades has been promising. With careful consideration and strategic planning, Melbourne property can indeed be a good investment.
