Melbourne Property Market Update – January 31st, 2015
By Peter Sarmas on 31 Jan 2015
No Comments yet, your thoughts are very welcome
Most markets around Australia are still enjoying some degree of growth from one month to the next. If you believe there is a looming downturn and want to invest securely, you may want to consider the safe havens. Nila Sweeney from Your Investment Property reports on the areas that are largely protected from any sustained down turn, due to their desirability, consistently high demand and relative affordability.
Marc Howe from Sourceable explains why Australian real estate investors are becoming increasingly vulnerable to interest rate hikes or property market slumps as rental levels continue to lag amidst gains in dwelling prices. Rental levels in Australia’s major urban centres logged only tepid growth last year, as properties for lease continue to throng the market and investment demand flourishes.
In the month of November 2014 detached house sales increased by 4.0 per cent in Victoria, 16.0 per cent in Queensland, and 0.3 per cent in South Australia. Detached house sales fell in November in New South Wales (-5.6 per cent) and Western Australia (-10.6 per cent, following a +24.8 per cent result in October). HIA chief economist, Harley Dale explains the latest results for the HIA New Home Sales Report, a survey of Australia’s largest volume builders.
Melbourne’s housing market remained solid in the final quarter of last year, with the city’s median house price of $669,000 up five per cent on the September quarter. Prices increased in inner, middle and outer suburbs, in the latest REIV quarterly results. REIV chief executive officer Enzo Raimondo gives a full report on why the Melbourne housing market remains solid in the December quarter.
Martin North, the principal of Digital Finance Analytics reports that bank spreads have increased by 35 basis points. Continuing their analysis of bank margins, they have updated their industry model, with the latest funding and product data.
When buying in larger suburbs it is sensible to consider where specifically a home is located as factors such as distance from a train station, park or school may vary considerably, the form of housing may vary as well. Robert Larocca of CoreLogic RP Data tells us which are Melbourne’s ‘mega suburbs’.
