The meteoric rise of Melbourne’s property market
Sydney has long been the crown on top of Australia’s property market, recording year on year growth and netting investors huge capital gains. Melbourne has often come a close second, never quite reaching the dizzying growth-heights of Sydney’s market.
It looks like things may be about to change, as Melbourne’s property market has peaked it’s nose ahead of Sydney’s in several indicators of growth. Let’s have a closer look at what’s going on in these two gargantuan property markets, and consider what it may mean for home-buyers.
Melbourne’s on top of the pile
A recent report by the Victorian government revealed statistics that bode well for the wider region. Perhaps most revealing was the fact that Melbourne’s year-on-year growth in dwelling values eclipsed Sydney’s by 0.2 per cent in the last year – indicating that Melbourne’s market is on the way up.
Building activity was up in Victoria as well, with May 2016 approvals increasing by over 5 per cent according to the Australian Bureau of Statistics. More importantly, Victoria is the only state to experience an increase in approvals in May 2016, telling us that Melbourne and Victoria’s property market may just be the hottest in the country.
Lucky residents will certainly be cheering growth on, as their property values continues to increase, potentially dwarfing their home loans.
Melbourne’s year on year growth in dwelling values eclipsed Sydney’s by 0.2 per cent in the last year.
What does it all mean!?
Lovely as all those promising statistics may be, what does it all mean for the average Aussie? You’ll most likely know that this growth may identify Melbourne as the most lucrative investment property market in Australia, ahead of the once untouchable Sydney.
For home-buyers, there’s good news as well with the median values in Melbourne remaining almost $200,000 less than Sydney at $587,500 according to CoreLogic RP data. With lower prices and more promising growth prospects, Melbourne’s the place to be if you’re buying a home.
With all the fanfare around the skyrocketing property market, it may be easy to forget about one of the most important things when buying a home – your finance. Talk to an experienced mortgage broker to ensure you have the most suitable loan product for your needs, and are unimpeded on your climb up the Melbourne property ladder.
CATEGORIES
Home Loans, Mortgage Broking
