Melbourne Hotspots - 2nd Half 2017
“Melbourne has continued to perform in 2017, due to increasing demand from a growing population and being a more affordable investment option to Sydney. First home buyers will need to be eagle-eyed to secure their properties as there are bargains to be had within 20km from the CBD”.
Tony Brasier (PRDnationwide Chairman & Managing Director)
The PRDnationwide Melbourne hotspots report analyses all suburbs within the Greater Melbourne region, providing valuable insights and highlights of the property market for the rest of 2017 and into 2018. This report takes 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 between 2016 and 2017.
- 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
$399,055 as at June 2017, having increased by 2.9% from the previous
- Projects value -
developments scheduled to commence in the 2nd half 2017, which includes
commercial, and residential projects. This
is key to maintaining growth as it indicates a potential increase in
economic and commercial activity; as well as inter-connectivity to key
transport routes, the CBD, and other major urban business hubs.
Between 2016 to Q3 2017 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.
Ensuring that there is a healthy level and mix of future developments is crucial for Melbourne, to support population growth and also increase economic growth potential. This will have a positive spill-over effect on the property industry, ensuring a sustainable level of capital growth in the medium and long-term future.
Overall Melbourne’s property market is expanding to match the strong population growth seen in the state of Victoria. Affordable options can be found in the north and west of inner CBD, while infrastructure projects in 2017 will underpin future growth in outer Melbourne suburbs.For further information on each PRDnationwide Capital City 2nd half 2017 Hotspot Series, please contact firstname.lastname@example.org.