Melbourne Hotspots 1st Half 2017

The PRDnationwide Melbourne hotspots report analyses all suburbs within the Greater Melbourne region. It provides valuable insight and highlights for the market, reporting on a number of key indicators to create a holistic picture of the property conditions in 2017. This report focuses on suburbs within a 20km radius of the CBD, taking into consideration the following factors: 

  • Sales indicators - the number of sales transactions (suburbs with less than 20 sales are excluded in affordable hotspots and top performer selection) and median price growth over the past fifteen months between 2015 and 2016/17.
  • Rental indicators - median rental price, rental yield, and vacancy rates.
  • Affordability - the average Victorian home loan, which indicates the amount that banks are comfortable with lending to home buyers. To determine the maximum property price, 40% is added to the average Victorian home loan, which was $394,677** as at December 2016, having increased by 3.7% from the previous quarter.
  • Projects value - developments scheduled to commence in the 1st half 2017, which includes mixed use, infrastructure, industrial, and residential projects. This is key to maintaining growth as it indicates a potential increase in economic and commercial activity; as well as interconnectivity to key transport routes, the CBD, and other major urban business hubs. 

In 2016/17 the Melbourne property market saw unit prices begin to level out after a period of steady growth, while houses continue to benefit from an increasing Victorian population, unchanged cash rate, and sustained demand.

For further information on each PRDnationwide Sydney 1st Half 2017 hotspot please contact research@prd.com.au