As 2019 quickly approaches we check in to review the year that was in Melbourne.
Once again coming in second fiddle to big brother Sydney but this time for the right reasons, the Melbourne property market has reported an overall annual loss of 5.8 percent for 2018 with mixed results across the suburbs.
Property valuation and advisory firm Herron Todd White, have released their analysis of the latest annual data which we’ve taken a look at so you can easily digest Melbourne’s year at a glance.
Development Hotspots a Clear Winner
On the winning end of a year showing some definite losses in Melbourne have been a number of Bayside and inner-city suburbs including Chelsea and Carrum on the Bay and Bentleigh and Wheelers Hill among others benefiting as momentary “hotspots” as a number of small development projects gained steam from 2017.
The report showed a lot of these suburbs becoming popular with developers and investors looking to build townhouses or subdivide larger blocks.
A proximity to the beach, shops and public transport, as well as comparatively affordable large blocks prime for development has been a large factor in the success of the suburbs combined with an increasing population looking for affordable options.
Inner Melbourne Apartments Take a Hit
A concern over apartment saturation has been shown to have resulted in a cooling of prices in the inner suburbs.
A number of developments ceased commencement to combat the volatility of the market given the tighter lending conditions and an overall reduction in investors in the market through the year.
We currently see Melbourne’s dials on the property clock pointing to a declining market and will continue to keenly follow the progress through 2019.
Outer Suburbs Weather The Storm
Vacant land was the big winner in the outer suburbs, alongside homes built on good sized blocks, starting strong in January and either holding or gaining value in most outer northern suburbs according to the report. Multiple suburbs continuously released more land and housing packages to keep up with the demand including Mickleham in the Outer North seeing a Median growth of $20,000 however Wollert with $60,000 higher Median came to down a similar amount to $600,000. The amount of land releases for 2018 has been shown by the report to very high with a vast number selling out long before completion”
We currently see Melbourne’s dials on the property clock pointing to a declining market and will continue to keenly follow the progress through 2019.
