Melbourne Property

<p>Melbourne&#39;s unit market has continued to hold firm despite a cooling off in the house market.</p>

<p>CoreLogic&rsquo;s national Home Value Index pegged the Melbourne-wide apartment growth at 0.4% over April, the third consecutive month growth in the unit market has outstripped growth in the house market.</p>

<p>The Melbourne unit market (which incorporates both units and townhouses), is now 0.2% since the start of 2022, after posting 0.2% growth across March and 0.1% in Feb. Values started the year poorly, going backwards -0.4% in January.</p>

<p>The median apartment value in Melbourne is now $630,671.</p>

<p>[smartcode_project:default project_id=1260 project_image_fid=177634]</p>

<p>The growth in unit values is a stark contrast to the house market, which is sliding due to the affordability factors brought to more of a head following the RBA&#39;s interest rate hike in May, and expectation of further rate hikes.</p>

<p>Houses Melbourne-wide, on average, have remained flat since the start of 2022, but that was mainly due to a strong start in January. The rolling quarterly growth is now -0.5% after a 0.2% decline across April, CoreLogic data found.&nbsp;</p>

<p>CoreLogic&rsquo;s Research Director Tim Lawless&nbsp;says the weakening state of the market has taken the rolling quarterly trend into negative territory across Melbourne for the first time since these cities were in the midst of extended lockdowns in mid-to-late 2020.</p>

<p>[smartcode_project:default project_id=2806 project_image_fid=175415]</p>

<p>Advertised inventory, at a national level, is tracking almost 30 per cent below the previous five-year average however, in weaker markets like Melbourne, advertised supply levels have normalised, with listings in Melbourne 8.2%&nbsp;higher.</p>

<p>Higher stock levels across these markets can be explained by an above average flow of new listings coming on the market in combination with a drop in buyer demand</p>

<p>&ldquo;With higher inventory levels and less competition, buyers are gradually moving back into the driver&rsquo;s seat. That means more time to deliberate on their purchase decisions and negotiate on price,&rdquo; Lawless says.</p>

<p>Rental markets are also showing multi-speed conditions, with most of the capital cities experiencing an upward trend in rental growth in 2022. Nationally, rents were up 2.7% over the three months to April, taking the annual change in national rents to 9.0%. A year ago, the annual change in national rents was 4.9 per cent. Based on the annual change, house rents (+9.1 per cent) are rising faster than unit rents (+8.7 per cent), however this trend is changing sharply as demand for unit rentals increases.</p>

<p>[smartcode_project:default project_id=253 project_image_fid=52822]</p>

<p>&ldquo;On a rolling quarterly basis, we are now seeing unit rents rising faster than house rents especially in Melbourne where rental conditions across the unit sector were previously much softer,&rdquo; Lawless says.</p>

<p>&ldquo;The shift in rental demand towards units reflects both rental affordability pressures, which are deflecting more demand towards the &lsquo;cheaper&rsquo; unit sector, and the return of overseas migrants and visitors. Rental demand from overseas arrivals tends to skew towards inner city and higher density precincts.&rdquo;</p>

<p>In Melbourne, unit rents are 3.6 per cent higher over the past three months compared with a 1.2 per cent rise in house rents. Higher yields and long-term prospects for capital growth could see investors comprising a larger portion of housing market activity.</p>

<p>[smartcode_project:default project_id=3281 project_image_fid=46048]</p>

<p>With the cash rate set to move through a rapid tightening cycle, CoreLogic expect this trend towards a gradual softening in the growth rate will become more pronounced over the coming months, before the national index starts to trend lower.</p>

<p>&ldquo;Although we are expecting the housing market to move into a downturn through the second half of the year, it is important to remember the context of the recent growth phase,&rdquo; he says.</p>


Melbourne's unit market has continued to hold firm despite a cooling off in the house market


alisonwarters@gmail.com

Melbourne apartment market insights: What happened over April

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<p>Melbourne still has strong numbers for price growth, but its up-cycle is nearing the end.</p>
<p>Sales activity, while still solid, is falling steadily and the number of growth markets is close the lowest levels since the up-market started.</p>
<p>The other clue pointing to the end of the cycle is that all the precincts that still have multiple growth suburbs are at the lower end of the market - most are outer-ring suburban areas. It’s now difficult to find inner-ring or middle-ring precincts with growth suburbs.</p>
<p>To demonstrate the steady decline in sales, a comparison of numbers in successive March Quarters shows this pattern: 33,109 (2015); 28,899 (2016) and 28,948. Sales in the June Quarters have been 38,031 (2015), 34,115 (2016) and 32,300 (2017).</p>
<p>In Hotspotting’s research for The Price Predictor Index, the total number of suburbs with growing sales activity has dropped from 96 in the Autumn report, to 60 in Winter edition and further to just 35 in the Spring survey.</p>
<p>These trends confirm a steady diminution in the strength of the market. And in terms of annual price growth, the latest data from CoreLogic has Melbourne ranked third on dwelling price growth behind Hobart and Sydney.</p>
<p>The remaining growth locations are in the cheaper areas, such as the LGAs of Brimbank and Melton (west); Hume and Whittlesea (north); Wyndham (far south-west;) and Frankston and Mornington Peninsula (far south/south-east).</p>
<p>But even these affordable markets are gradually declining in terms of the number of growth suburbs.</p>
<p>The leading precincts are Whittlesea and Wyndham LGAs. Whittlesea is consistently one of the city’s strongest markets, driven by affordability, infrastructure and jobs nodes.</p>
<p>We have identified four suburbs with growing sales momentum, down from six in the Winter survey. The suburb of Epping is one of the remaining strong markets, with sales moving from 115 to 145 to 135 to 160 to 172 in recent quarters. </p>
<p>In neighbouring Hume, growth suburbs include Broadmeadows, Roxburgh Park and Meadow Heights (where sales have lifted from 27 to 29 to 34 to 45 to 51 to 54 in the past six quarters).</p>
<p>Wyndham in the south-west is the other stand-out, led by Hoppers Crossing, Tarneit, Williams Landing and Werribee.</p>
<p>The Brimbank LGA has been one of the Melbourne’s most outstanding markets for the past 2-3 years. It still has three suburbs with rising sales momentum but a greater number of Plateau markets – further evidence of the wind-down in the market.</p>
<p>Cheaper markets in the far south/south-east, including the LGAs of Frankston, Casey and Mornington Peninsula, still have growth suburbs but, they are outnumbered by suburbs with Plateau-ing sales activity.</p>
<p>Upmarket and Middle Melbourne areas remain solid but most are dominated now by Plateau markets: they include the LGAs of Whitehorse, Moreland and Kingston. Very few growth suburbs remain.</p>
<p>There are also many suburbs where sales activity has dropped considerably, compared to 2014-2015 levels. They include Box Hill, Brighton, Brunswick East, Caulfield North, Chadstone, Clayton, Doncaster, Footscray, Glen Waverley, Hawthorn, Kew, Richmond, Rowville, South Yarra, West Melbourne and Windsor.</p>
<p class="BodyCopy">The worst performers are the inner-city unit precincts. We rank the CBD, Southbank and Docklands as Danger markets, as well as Carlton and Collingwood.</p>
<p class="BodyCopy"><span>Terry Ryder is the founder of </span><a href="https://www.hotspotting.com.au/" target="_blank">hotspotting.com.au</a><span>. You can </span><a href="mailto:%20%3Cscript%20type='text/javascript'%3E%20%3C!--%20var%20prefix%20=%20'ma'%20+%20'il'%20+%20'to';%20var%20path%20=%20'hr'%20+%20'ef'%20+%20'=';%20var%20addy38821%20=%20'ryder'%20+%20'@';%20addy38821%20=%20addy38821%20+%20'hotspotting'%20+%20'.'%20+%20'com'%20+%20'.'%20+%20'au';%20document.write('%3Ca%20'%20+%20path%20+%20'/''%20+%20prefix%20+%20':'%20+%20addy38821%20+%20'/'%3E');%20document.write(addy38821);%20document.write('%3C//a%3E');%20//--%3E/n%20%3C/script%3E%3Cscript%20type='text/javascript'" target="_blank">email him</a><span> or follow him on </span><a href="https://twitter.com/hotspotting" target="_blank">Twitter.</a></p>
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terryryder-YECXbqmri2

Melbourne CBD, Southbank and Docklands labelled danger markets

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<p class="p1"><span class="s1">Few markets across Australia are pumping as strongly as the market in the Wyndham City LGA in the south-west of Melbourne.</span></p>
<p class="p1"><span class="s1">Areas that offer affordable homes are attracting increasing attention in Melbourne and the Wyndham City area is now the most active market in the metropolitan area, with key suburbs Hoppers Crossing, Point Cook, Tarneit, Werribee and Wyndham Vale achieving a combined 3,500 house sales in the past 12 months.</span></p>
<p class="p1"><span class="s1">All of these suburbs have seen significant increases in sales volumes in the past 12-18 months and strong price growth has resulted. Most have had median price growth well above 10% in the past 12 months.</span></p>
<p class="p1"><span class="s1">Wyndham City sits in the corridor between Melbourne and Geelong, and is one of Australia’s leading population growth areas. It has good transport links to central Melbourne (helped by the $5 billion Regional Rail Line), plenty of major jobs nodes, solid infrastructure and some of the Melbourne region’s most affordable housing.</span></p>
<p class="p1"><span class="s1">It has suffered from oversupply issues in the past, thanks to over-zealous developers – but currently vacancy rates in the key suburbs are low. There is a strong need for new dwellings, with the LGA’s population rising around 10,000 per year.</span></p>
<p class="p1"><span class="s2">Given all of that, it’s no surprise that t</span><span class="s1">he City of Wyndham is a place for young families. Those aged from 20–44 represent 42% of the population, compared to the state average of 36%, while children aged 0–19 make up 31%, also higher than the state average of 24%.</span></p>
<p class="p1"><span class="s1">Wyndham City has a diverse economy, with a number of key industries, including:-<span class="Apple-converted-space"> </span></span></p>
<ul class="ul1">
<li class="li1"><span class="s1">industrial and technology precincts (including major industrial estates at Laverton North which generate $7.3 billion in annual economic activity);</span></li>
<li class="li1"><span class="s1">several large retail precincts, including Pacific Werribee, Point Cook Town Centre, the Werribee CBD (which has both retail and commercial space) and Old Geelong Road, Hoppers Crossing (a precinct of 250 homemaker stores and bulky goods retail);</span></li>
<li class="li1"><span class="s1">tourist attractions such as Werribee Park Mansion, the Open Range Zoo, the State Equestrian Centre and the Point Cook RAAF Museum; and<span class="Apple-converted-space"> </span></span></li>
<li class="li1"><span class="s1">agriculture, including vegetable growing and grazing (Werribee South has one of Victoria’s leading market garden areas).</span></li>
</ul>
<p class="p1"><span class="s1">One of the features of the municipality is the number of significant jobs nodes. These include RAAF bases at Laverton and at Point Cook, the Werribee Agriculture &amp; Food Technology Precinct, the Werribee Park Tourism Precinct and the Melbourne Water Western Treatment Plant.</span></p>
<p class="p1"><span class="s1">The Agriculture &amp; Food Technology Precinct is the largest in Australia, covering 800ha and specialising in food, food packaging and bio-technology. The LGA has 3,000ha of market gardens in the Werribee South area and is considered the broad leaf vegetable capital of Australia.<span class="Apple-converted-space"> </span></span></p>
<p class="p2"><span class="s2">Property development and construction is a major part of the economy. Dwelling approvals have risen from fewer than 1,000 a year before 1999 to consistently above 2,300 a year since 2001.</span></p>
<p class="p1"><span class="s1">Melbourne’s strong run of house price growth has rippled out to the outer-ring suburbs and now many of the growth locations are in the cheaper areas, led by the suburbs of Wyndham City.</span></p>
<p class="p1"><span class="s1">The relatively-low house prices are enticing buyers to the area. The median price for a house in Tarneit, 30km west of Melbourne’s CBD, is $470,000 – compared to Ringwood East, 30km east of the CBD, where the median is $830,000.</span></p>
<p class="p1"><span class="s1">Consequently, sales activity in Wyndham has been rising, led by Hoppers Crossing, Truganina and Werribee. Annual sales in Hoppers Crossing grew from 468 in 2014 to 630 in 2015, according to <em>realestate.com.au</em>, and have continued on a steady incline since.</span></p>
<p class="p1"><span class="s1">This has been accompanied by price growth. In SQM Research’s latest Housing Boom and Bust report, Melbourne’s south-west was identified as the nation’s best-performing region for house price growth.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">With 972 house sales in the last 12 months, Point Cook is one of Melbourne’s busiest markets and its median house price has grown 16% to $585,000 in the past 12 months.</span></p>
<p class="p1"><span class="s1">Elsewhere across the LGA, median house prices remain mostly in the $400,000s, despite strong growth in the past 12 months.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">The longer-term growth rates (average annual rises over 10 years) are 6–7% per year for most suburbs in this precinct, while yields are generally in the 3.6% to 4.3% range.</span></p>
<p class="p1"><span class="s1">All of this, together with the recent decreases in vacancy rates, makes Wyndham City a market worthy of consideration by property investors.<span class="Apple-converted-space"> </span></span></p>
<p class="p1"><span class="s1">The market is dominated by standalone houses (84%), but the mix is changing as the ratio of units-to-houses increases. Since the 2011 Census, the market share of units has increased from 10% of total dwellings to 16%, according to the 2016 Census.</span></p>
<p class="p1"><span class="s1">In suburbs like Werribee and Hoppers Crossing, units typically sell in the low $300,000s, with typical rental yields around 5%.</span></p>
<p class="p1"><span class="s2">T<em>erry Ryder is the founder of hotspotting.com.au</em></span></p>
<p class="p2"><span class="s4"><a href="https://mailto:ryder@hotspotting.com.au"><em>ryder@hotspotting.com.au</em></a></span></p>
<p class="p4"><span class="s2"><em>twitter.com/hotspotting</em></span></p>
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Wyndham City south-west of Melbourne 'pumping strongly': Hotspotting's Terry Ryder 

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<div>It seems that Melbournites are not waiting to buy land...they are opting buy land and wait.<br><br>At least for now.<br><br>Melbourne has accelerated to record monstrous population growth in recent years, while the regions of Victoria have largely flatlined ex-Geelong.<br><br>You can make your own assessment of whether high population growth is impacting the Melbourne housing market, but the land sales figures look pretty damning. </div>
<div> </div>
<div>The pressure appears to be starting to tell, as vacant land sales are being gobbled up at the fastest pace ever recorded, according to Oliver Hume's quarterly data.</div>
<div> </div>
<div><a href="https://www.propertyobserver.com.au/images/2017/08/24/A1.jpg" target="_blank">Click to enlarge</a></div>
<div> </div>
<div class="separator"><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/08/24/A1.jpg" alt=""></div>
<div> </div>
<div><strong><span style="text-decoration: underline;">Model of a modern Valuer-General</span></strong></div>
<div> </div>
<div>Rising land values have been a key input into rising house prices in Melbourne.</div>
<div> </div>
<div>Median vacant land prices in metropolitan Melbourne increased by +3.7 per cent in calendar year 2016, according to the Valuer-General, rising from $219,000 to $227,000.</div>
<div> </div>
<div>Median house prices in metro Melbourne rose for a fourth consecutive calendar year from $600,000 in 2015 to $635,000 in 2016.</div>
<div> </div>
<div>Median unit values increased far more steadily over the year, up from $487,000 to $494,000.</div>
<p> </p>
<div class="separator"><a href="https://2.bp.blogspot.com/-PwOPlS6xpus/WZlT3UEHAmI/AAAAAAAAltM/NQqU2fnmXAoMP4yOetW8GAK5KgUYsa9EgCLcBGAs/s1600/A2.jpg"><img src="https://2.bp.blogspot.com/-PwOPlS6xpus/WZlT3UEHAmI/AAAAAAAAltM/NQqU2fnmXAoMP4yOetW8GAK5KgUYsa9EgCLcBGAs/s640/A2.jpg" width="640" height="382" data-original-height="831" data-original-width="1389"></a></div>
<div class="separator"> </div>
<div>The ratio of land prices to house prices on this data series hasn't changed a great deal over more than three decades, to some extent reflecting what is actually being measured, with the vacant land sales often located in fringe or secondary locations.</div>
<div> </div>
<div>Perhaps this is the subject for a longer blog post another time, but the Valuer-General report always cautions about too many generalisation being drawn from the headline numbers. </div>
<div> </div>
<div>House and land prices in regional Victoria have lagged Melbourne substantially over the past 10 years to 2016, at least in aggregate.</div>
<div> </div>
<div>Metro Melbourne median house prices have now more than doubled over the past dozen years, and have quadrupled since 1998. </div>
<div> </div>
<div>In 2016, regional house prices rose by +2.6 per cent to $320,000.</div>
<div> </div>
<div>This represents an increase of $100,000 or +45 per cent over 10 years, before accounting for stamp duty and repairs, maintenance, and other holding costs. </div>
<p> </p>
<p class="p1"><span class="s1">PETE WARGENT is the co-founder of <a href="https://allenwargent.com/" target="_blank"><span class="s2">AllenWargent</span></a> property buyers (London, Sydney) and a best-selling author and <a href="https://petewargent.blogspot.com/" target="_blank"><span class="s2">blogger</span></a>.</span></p>
<p class="p2"><span class="s3"><em>His latest book is </em><a href="https://www.bigskypublishing.com.au/Books/General-Interest/Four-Green-Houses--and-a-Red-Hotel/1015/productview.aspx" target="_blank"><span class="s2"><em>Four Green Houses and a Red Hotel</em></span></a><em>.</em></span></p>
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pwargent-M4siyDbqQY

Melbourne land sales figures look pretty damning

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<p>Despite positive economic conditions and population growth, the Inner Melbourne apartment marker continued to soften in the first quarter of 2019, JLL have said.</p>
<p>The firm’s Australia Residential Research - April 2019 said that despite a cooling housing market, favourable economic conditions in the state continue.</p>
<p>Victoria continues to lead the country in economic growth, the report said.</p>
<p>“Victoria’s strong economic fundamentals will alleviate the severity of the current downturn and provide a healthy long-term outlook for the market,” it said.</p>
<p> <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/30/New%20Project%207.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/30/New%20Project%208.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/30/New%20Project%209.jpg" alt=""></p>
<p>Meanwhile, demand is supported by credit conditions that have improved slightly.</p>
<p>But residential buyers remain apprehensive, JLL said.  </p>
<p>“The continued absence of investors means that price growth is unlikely to return to its previous peak for an extended period.”</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/30/New%20Project%2010.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/30/New%20Project%2011.jpg" alt=""></p>
<p>Apartment completions will decline in 2019 before rising in 2020 and 2021, JLL said.</p>
<p>Vacancy remains low, but rental growth rates diverge between precincts.</p>
<p>“Rents will continue to rise with vacancy remaining low,” it said.</p>
<p>“Going forward, limited investor stock may result in further falling vacancy which is likely to drive rental growth.”</p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/30/New%20Project%2012.jpg" alt=""></p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2019/5/30/New%20Project%2013.jpg" alt=""></p>
<p>Prices continue to fall, reflecting subdued demand while yields are likely to soften on the back of declining price.</p>
<p>“More projects will be deferred in 2019, as pricing continues to cool,” the report said.</p>
<p>“Development activity will eventually rise when the market becomes more fluid again and more buyers are able to purchase off the plan property.”</p>
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jonathanchancellor-7SQnKwU6yx

Melbourne apartment market softens despite economic conditions: JLL

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<p>The budget end of Melbourne’s prestige market faces tough challenged, according to Melbourne buyers' agent Nicole Jacobs. </p>
<p>Jacobs defines the entry-level prestige market as between $2.5 million to $3.5 million. </p>
<p>"This gets you a fairly modest family abode in Hampton close to the beach, a single-fronted home in Albert Park that is liveable or a sizeable apartment or, if you are lucky, a townhouse in Toorak," she blogged.</p>
<p>But this section of the market had changed slowly over the past 12 auction weekends. </p>
<p>"Properties that are compromised by way of position or floor plan, are unrenovated or on the wrong side of the street, are finding it tough," she told Domain readers.</p>
<p>"The family home market at this level is very discerning and it is often the buyer’s first big property upgrade.</p>
<p>"Expectations are high and the competition tough.</p>
<p>"They also know when the price does not reflect the value in the area.</p>
<p>The clear message for vendors was "meet the market or be on the market for some time".</p>
<p>"The market is changing and it is now time for buyers to have the upper hand," she says. </p>
<p>Jacobs agrees good properties in this price bracket were still selling well, but the key was getting the price right. </p>
<p>"Get it wrong and the property no longer attracts competition among anxious buyers. </p>
<p>"It is passing in, in many cases on a vendor bid, and then appearing as a private sale with an asking price at or above the original advertised price range.</p>
<p>"Clearly, the only competition is the vendor."</p>
<p>Emma Bloom, from Melbourne buyer's agent Morrell &amp; Koren, told Fairfax Media that auctioneers were pulling out all stops to get the tiny number of bidders to raise their paddles. Many agents were also hitting the panic button and selling before auction.</p>
<p>"If you put in any bid, it's yours," she suggested.</p>
<p>"Everyone's standing around with their hands in their pockets."</p>
<p>But last month following a $9 million sale of a 2000sq m luxury house in Glen Iris, she expressed the opinion: "It was a ridiculous price." </p>
<p>"Whoever says there is a slowdown needs to be watching what's happening in the leafy inner suburbs of Melbourne," she said.</p>
<p>Emma Bloom further claimed many expats fear the Australian property market could become even more competitive and expensive because of record low interest rates and high immigration.</p>
<div class="cq-article-content-paras section">
<div id="article-inline-ad" class="adWrapper">"They are super nervous about the tide going out and being left with nothing," she advised, in an article on the $5 million plus market.</div>
<div class="adWrapper"> </div>
<div class="adWrapper">"They fear not having anywhere to live if they don't buy now."</div>
<div class="adWrapper"> </div>
<div class="adWrapper">Informed weekend market commentary came from long-established real estate agent Greg Hocking, from Greg Hocking Holdsworth, who suggested it was "a mixed bag at the moment.”</div>
<div class="adWrapper"> </div>
<div class="adWrapper">“Buyers are becoming more critical and that is very evident.</div>
<div class="adWrapper"> </div>
<div class="adWrapper">"We had a couple of decent sales today, but there were a couple of others where prospective buyers just stood there and did nothing.”</div>
</div>
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j.ballantyne1990-6AQqhLzZaK

Nicole Jacobs says Melbourne's 'budget prestige' market is becoming a buyers' market

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<p>The median house price in most capital cities rose over the December quarter, according to the latest Domain House Price Report. </p>
<p>Weakening investor activity and tightened lending conditions continue to impact Sydney, but Domain reported a slight increase over the December quarter.</p>
<p>Sydney prices in the NSW capital still sit lower than six months ago.</p>
<p>Meanwhile Melbourne exceeded a median of $900,000 for the first time narrowing the gap between Sydney and Melbourne to a three-year low.</p>
<p>Brisbane and Darwin were the only two capital cities to record median house price decreases over the quarter. <br><br> Median unit prices varied across the capital cities, with an oversupply of units that continues to impact Brisbane and Darwin.</p>
<p>Hobart recorded the strongest annual growth in units over the December quarter, followed by Melbourne, Adelaide, Sydney and Canberra. <br>  <br> The national median house price increased by 1.4% over the December quarter to $813,024, while the annual rate of growth has slowed to 5%, the lowest in 15 months.  <br><br> Capital city unit markets reported a minor price growth over the December quarter, increasing by 0.3% to $557,794.</p>
<p>Unit growth across the capital cities slowed to a 15-month low of 2.3%.  </p>
<table class="domain-table" style="height: 201px; width: 302px; border-color: #000000; border-width: 1px; border-style: solid;">
<thead><tr>
<td><strong>HOUSE</strong></td>
<td><strong>DEC 2017</strong></td>
</tr></thead>
<tbody>
<tr>
<td>Sydney</td>
<td>$1,179,519</td>
</tr>
<tr>
<td>Melbourne</td>
<td>$903,859</td>
</tr>
<tr>
<td>Brisbane</td>
<td>$548,918</td>
</tr>
<tr>
<td>Adelaide</td>
<td>$522,815</td>
</tr>
<tr>
<td>Perth</td>
<td>$557,567</td>
</tr>
<tr>
<td>Canberra</td>
<td>$753,516</td>
</tr>
<tr>
<td>Hobart</td>
<td>$443,521</td>
</tr>
<tr>
<td>Darwin</td>
<td>$565,696</td>
</tr>
<tr>
<td>National</td>
<td>$813,024</td>
</tr>
</tbody>
</table>
<p><strong><br>Sydney </strong><br><br> “A varied level of price growth across all capital cities was reflected in both the national median house and unit prices this quarter. Overall, prices rose marginally in the three months to December but the slower pace has weighed down the annual growth to its lowest rate since September 2016,” said the newly installed top spokesperson, Domain data scientist, Dr Nicola Powell. </p>
<p>House prices in Sydney increased marginally by 0.5% over the December quarter, reaching $1,179,519. Following a recent price decline over the September quarter, Sydney’s median house price remains lower than it was six months ago, with annual growth slowing to 4% year-on-year.  </p>
<p>Sydney’s unit prices decreased slightly to $736,879, a 0.4% drop over the quarter. Annually, units in Sydney grew 1.7%, a 15-month low for the capital city.  </p>
<p>“House prices in the Harbour City continue to moderate in line with an investor activity slowdown, and first home buyer participation rates are at their highest level in six years as entry-level buyers respond to State Government incentives,” said Powell. </p>
<p>“Sydney’s double-digit growth phase appears to be in the rear-view mirror, and with no further rate cuts in sight, the market may continue to moderate in 2018. Demand is likely to weaken, as the heightened investor activity that Sydney has experienced is unlikely to be significantly offset by the rising number of first home buyers.” </p>
<p><strong>Melbourne</strong></p>
<p>Another quarter of solid growth has pushed Melbourne’s median house price to $903,859, exceeding the $900,000 mark for the first time and narrowing the median price difference between Melbourne and Sydney to a three-year low. House prices in Melbourne grew 3.2% over the quarter and 11.3% over the year, resulting in Melbourne’s fifth consecutive quarter of double-digit annual growth.  </p>
<p>Similarly, Melbourne’s unit market delivered strong results over the December quarter, increasing by 2.8% to reach a record high of $506,079. This reflects a healthy 8.0% annual price jump, the strongest annual gain for the Melbourne unit market in seven years.  </p>
<p>“As investor activity retreats and the housing market adjusts to tighter lending standards, it remains to be seen whether Melbourne’s remarkable price growth will continue. However, steady population increases and government incentives may support ongoing demand as the year unfolds,” said Powell. </p>
<p>“Similar to Sydney, first home buyer numbers in Melbourne have risen, recording its highest level of activity since 2009. This can be attributed largely to the Victorian government’s entry-level buyer incentives. In the coming months we are likely to continue to see a higher demand for entry-level homes, helping to drive price growth at the lower end of the market, as well as support regional price movements throughout the state.” </p>
<p><strong>Brisbane</strong></p>
<p>Over the December quarter, median house prices in Brisbane decreased slightly by 0.6% to $548,918, the second consecutive quarter of decline for the capital city. This has slowed the annual price growth to a margin increase of 0.4% year-on-year, the lowest rate of advancement in five years.  </p>
<p>Brisbane’s heightened supply continues to impact price movement in the unit market, with units recording a decline of 2.2% over the December quarter to $385,955 — a 4.5% drop compared to last year. Unit prices in the capital city are now at a four-year low.  </p>
<p>“Brisbane offers a large inventory of houses and units that fall under $500,000, and interstate migration has fuelled the Brisbane market over the past two years as out-of-state buyers head to the Sunshine State in search of a lower price point,” said Powell.  </p>
<p>“The surge of new apartments in Brisbane remains ahead of the demand, and although this continues to impact unit prices, population increases and a slowdown in new development starts and completions may work together to help balance the market.” </p>
<table class="domain-table" style="height: 235px; width: 314px;">
<thead><tr>
<td><strong>UNIT</strong></td>
<td><strong>DEC 2017</strong></td>
</tr></thead>
<tbody>
<tr>
<td>Sydney</td>
<td>$736,879</td>
</tr>
<tr>
<td>Melbourne</td>
<td>$<span>506,079</span>
</td>
</tr>
<tr>
<td>Brisbane</td>
<td>$<span>385,955</span>
</td>
</tr>
<tr>
<td>Adelaide</td>
<td>$<span>315,794</span>
</td>
</tr>
<tr>
<td>Perth</td>
<td>$<span>369,402</span>
</td>
</tr>
<tr>
<td>Canberra</td>
<td>$<span>426,124</span>
</td>
</tr>
<tr>
<td>Hobart</td>
<td>$<span>318,467</span>
</td>
</tr>
<tr>
<td>Darwin</td>
<td>$<span>395,279</span>
</td>
</tr>
<tr>
<td>National</td>
<td>$<span>557,794</span>
</td>
</tr>
</tbody>
</table>
<p><strong>Adelaide </strong></p>
<p>Adelaide house prices rose slightly by 0.9% over the December quarter to reach a median price of $522,815. This reflects a 3.5% increase year-on-year. </p>
<p>For the second consecutive quarter, Adelaide’s median unit price of $315,794 is the most affordable of the capital cities. A heightened level of supply continues to undermine Adelaide’s unit prices, which declined by 1.6% over the quarter — the second steepest quarterly decline after Brisbane. However, unit prices are up 2.0% over the year. </p>
<p>“Adelaide has avoided the extreme price surges impacting Australia’s east coast markets. Its steady pace of growth and diverse coastal lifestyle makes it a reliable location for buyers heading into 2018,” said Powell. </p>
<p><strong>Perth </strong></p>
<p>A marginal 0.5% increase over the December quarter has pushed Perth’s median house price to $557,567 — 2.5% lower than the previous year. </p>
<p>Lower levels of construction have buffered the local unit market in Perth, which improved by 1.0% to reach $369,402 over the quarter. However, year-on-year the city recorded a 1.7% drop. </p>
<p>“After multiple consecutive quarters of house price declines and fluctuating unit prices, the Perth market is showing signs of growth. The annual pace of decline in Perth house prices has slowed compared to the steeper falls recorded in 2016, and the annual unit price decline is at its lowest in almost three years,” said Powell.  </p>
<p>“Perth’s housing market outlook for 2018 depends largely on whether the city’s economy and population track upwards throughout the year.” </p>
<p><strong>Canberra </strong></p>
<p>Houses in Canberra reached a record high median price of $753,516 in December, recording a 5.0% quarterly increase and an 8.4% annual increase. </p>
<p>Canberra unit prices are beginning to show signs of recovery increasing for the second quarter by 0.1% to $426,124 in the three months to December. This is 0.4% higher than last year. </p>
<p>“Canberra house prices have been tracking upward for 15 consecutive months, delivering the second-best performance this quarter after Hobart. Renewed buyer and seller confidence has provided the nation's capital with a substantial price boost that will likely continue throughout 2018,” said Powell.  </p>
<p>“Housing finance, retail trade and strengthening business confidence has been key to driving the ACT economy, in addition to spikes in tourism, infrastructure and capital initiatives have stimulated business, contributing positively to the economy.”</p>
<p><strong>Darwin </strong></p>
<p>Darwin recorded its second consecutive quarter of negative price movement, falling by 2.6% and reaching an eight-year low of $565,696 over the December quarter. This follows an annual decline of 7.4% over the year. </p>
<p>Although median unit prices in Darwin remain 14.0% lower than last year, the unit market spiked over the quarter, jumping 9.3% to reach a median of $395,279. This is the highest quarterly price increase of all the capital cities. </p>
<p>“Darwin was the only capital city to record a median house price decline over the quarter and over the year, and a strengthening in the local market depends primarily on the state of the economy as we head into 2018,” said Powell.  </p>
<p>“Despite the recent uptick in prices, annual trends in Darwin’s unit market are still on double-digit decline. The oversupply of unit stock in the city is impacting the market, and price drops have been a consistent trend for Darwin since December 2016.”</p>
<p><strong>Hobart </strong></p>
<p>Over the December quarter, Hobart house prices surged 10% to a record high median of $443,521. Hobart was the only capital city to record double-digit growth quarterly and annually, with a 17.3% increase year-on-year. </p>
<p>Despite a minor decline of 0.8% over the quarter, unit prices in Hobart jumped 14.2% to reach a median of $318,467. Hobart recorded the strongest annual growth of all capital cities in both houses and units. </p>
<p>“It has been over a decade since Hobart experienced such a surge in house prices over a quarter, and the capital city’s results over the December quarter highlight the growing demand for homes in the Tasmanian capital,” said Powell. </p>
<p>“Despite the surges in price, Hobart still has the lowest median house price of all the Australian capital cities, and it remains a great option for buyers seeking an urban lifestyle with an affordable point of entry.”</p>
<p> </p>
<p><img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/1/31/unnamed.jpg" alt=""></p>
</div></body></html>

Price gap narrows between Melbourne and Sydney: Domain 

<html><body>
<p>The Melbourne land market has performed strongly over the past four years in response to a sustained undersupply, according to BIS Oxford Economics.</p>
<p>Surging population growth supported by improving economic conditions have combined with low interest rates to see underlying demand for dwellings steadily rise.</p>
<p>Initially, land prices were also largely affordable relative to the existing outer Melbourne housing stock, enabling pent-up demand to be released into the market.</p>
<p>Through this period, the numbers of new estates being marketed increased dramatically, with outer Melbourne lot production rising to a record 21,400 lots in 2014/15 and averaging 21,050 lots per annum over 2014/15 to 2016/17. Corresponding land price growth has also seen new house affordability deteriorate.</p>
<p>The significant rise in new land and house activity has been exceeded by new apartment construction, with this sector forecast to enter a modest oversupply from 2017/18, with potential knock-on effects to the new house and land market.</p>
<p>Likely falls in apartment prices may encourage the purchase of apartments instead of houses, while more competitive apartment rents may delay some first home buyers purchasing a new house.</p>
<p>While lot production is likely to hold up over 2017/18, it is expected to fall away over the following two years. Land prices are also expected to flatten out, or even decline as developers offer incentives to purchasers. The downturn is forecast to be brief and moderate, with a rising undersupply forecast to quickly re-emerge and drive the next upturn by the end of the decade. </p>
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jrobinson-rf4aSBido9

Melbourne land performs strongly over past four years: BIS

<html><body>
<div dir="ltr" align="left"><span dir="ltr">The median house price in Melbourne increased 13.9 per cent year-on-year. </span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">But the rate of growth in the September quarter was the slowest for Melbourne since the September quarter 2014.</span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left">
<div dir="ltr" align="left">
<span dir="ltr">The median house price in Melbourne increased 1.3 per cent over the September quarter to $880,902, the</span> Domain Chief Economist, Dr Andrew Wilson said.</div>
<div dir="ltr" align="left">
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">Median unit prices in Melbourne grew significantly, increasing by 3.4 per cent over the September quarter to a new record high of $506,334. </span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">"This means that year-on-year, unit prices have now increased by an incredible 11.4 per cent," Dr Wilson said.</span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">"The results suggest that recent record levels of new apartment development have had a negligible impact on price, with demand continuing to absorb higher levels of supply."<br> </span></div>
<div dir="ltr" align="left"><span dir="ltr">While the median rental price for houses in Melbourne remained steady over the September quarter, sitting at $420 per week, rental prices are up 5 per cent over the last 12 months.</span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left">
<div dir="ltr" align="left">
<div id="1468469170927-5">
<div class="wpb_text_column wpb_content_element ">
<div class="wpb_wrapper">
<p class="domain-table-title">Domain quarterly stratified median house prices</p>
<div>
<table class="domain-table">
<thead><tr>
<td>HOUSE</td>
<td>SEP 2017</td>
<td>JUN 2017</td>
<td>SEP 2016</td>
<td>QOQ %</td>
<td>YOY %</td>
</tr></thead>
<tbody>
<tr>
<td>Sydney</td>
<td>$1,167,516</td>
<td>$1,190,677</td>
<td>$1,079,309</td>
<td class="negative">-1.9%</td>
<td class="positive">8.2%</td>
</tr>
<tr>
<td>Melbourne</td>
<td>$880,902</td>
<td>$869,598</td>
<td>$773,399</td>
<td class="positive">1.3%</td>
<td class="positive">13.9%</td>
</tr>
<tr>
<td>Brisbane</td>
<td>$551,840</td>
<td>$552,874</td>
<td>$531,767</td>
<td class="negative">-0.2%</td>
<td class="positive">3.8%</td>
</tr>
<tr>
<td>Adelaide</td>
<td>$519,517</td>
<td>$520,846</td>
<td>$498,971</td>
<td class="negative">-0.3%</td>
<td class="positive">4.1%</td>
</tr>
<tr>
<td>Perth</td>
<td>$554,095</td>
<td>$561,391</td>
<td>$567,314</td>
<td class="negative">-1.3%</td>
<td class="negative">-2.3%</td>
</tr>
<tr>
<td>Canberra</td>
<td>$723,980</td>
<td>$693,962</td>
<td>$655,468</td>
<td class="positive">4.3%</td>
<td class="positive">10.5%</td>
</tr>
<tr>
<td>Hobart</td>
<td>$409,592</td>
<td>$392,170</td>
<td>$356,916</td>
<td class="positive">4.4%</td>
<td class="positive">14.8%</td>
</tr>
<tr>
<td>Darwin</td>
<td>$593,329</td>
<td>$615,670</td>
<td>$610,510</td>
<td class="negative">-3.6%</td>
<td class="negative">-2.8%</td>
</tr>
<tr>
<td>National</td>
<td>$819,455</td>
<td>$823,381</td>
<td>$758,367</td>
<td class="negative">-0.5%</td>
<td class="positive">10.8%</td>
</tr>
</tbody>
</table>
</div>
</div>
</div>
</div>
</div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
</div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">Similarly, median unit rents remained steady at $400 per week, up 5.3 per cent year-on-year.<br> </span></div>
<div dir="ltr" align="left"><span dir="ltr">“This period of growth marks the 20th consecutive quarter of house price growth for Melbourne. </span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left"><span dir="ltr">"While house prices continue to grow at a steady rate, unit demand is soaring.</span></div>
<div dir="ltr" align="left"><span dir="ltr"> </span></div>
<div dir="ltr" align="left">
<span dir="ltr">"The latest growth figures are further indication that demand is significantly ahead of supply," </span>Dr Wilson said.</div>
<div dir="ltr" align="left"> </div>
<div dir="ltr" align="left">
<div dir="ltr" align="left"><span dir="ltr">With policies in place to further restrict investors, it’s likely that rental prices will continue to rise, with fewer properties available, he added.</span></div>
</div>
</div>
</div>
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