Good news for Victoria! Victoria has Australia’s best performing economy, beating New South Wales to take the crown, according to recent research. Usually the two states share the top spot but Victoria edged New South Wales out to take the number 1 position on its own for the first time in three quarterly surveys. The CommSec State of the States market report found our city took the top spot on the overall performance rankings due to its economic growth, retail trade, the job market and construction work.
It seems Melbourne’s property market could have bottomed out, with prices recently starting on an upward trajectory, recording a small amount of growth. In June prices in Melbourne and Sydney increased for the first time since peaking in 2017, triggering a wave of commentary about the tide turning in these markets. CoreLogic’s Hedonic Home Value Index found dwelling values increased in Melbourne by 0.2% over June (the first rise since November 2017) and by 0.1% in Sydney (the first rise since July 2017).
Last month we detailed all the positive news for property, including the great Federal Election result - with no detrimental changes to negative gearing and capital gains tax, the news that APRA are reviewing its guidance on serviceability assessments to lower borrowing restrictions, and the resulting likelihood that activity would now pick up. So what’s happened since then?
It’s all positive for property. Well, the federal election is finally over, and what a result! The mere fact that it is over will, in itself, create certainty in the property market, but even more so given the Coalition is back at the helm and changes to negative gearing and capital gains tax are off the table.
The Melbourne market is showing signs of strengthening The media is currently dominated by talk of the Federal Election, which has finally been called and will be held on Saturday, May 18, 2019. If Bill Shorten is elected, and the ALP’s policy to remove negative gearing for established properties is implemented, we believe the ramifications for the market will be enormous.
Should you go regional? GEELONG is not only Victoria’s best performing regional area, but Australia’s, according to new CoreLogic data. The Regional Market Update report found the city achieved Australia’s highest regional results once again, with house values rising by 9.1% for houses and 7.6% for units over 2018. This compares to the Latrobe-Gippsland region, where median house and unit values increased by 8.6% and 4% respectively. Rents in Geelong are also on the rise, with advertised rates rising by $20 per week for houses and $10 per week for units.
Smart buyers are confident, and active! A recent survey by ME Bank found almost four in five Melbourne homeowners were confident their property value would hold strong during 2019, despite forecasts to the contrary. The survey found more than a third were confident their house price would actually grow over the course of this year. While most data shows Melbourne property prices fell over 2018, data from the Real Estate Institute of Victoria (REIV) found the city’s median house sale price actually increased by 1.4%, and the unit median by 1.8%. How can this be?
Good news for investors! Melbourne's rental market is strong! While most data shows Melbourne property prices fell over 2018, data from the Real Estate Institute of Victoria (REIV) found the city’s median house sale price actually increased by 1.4%, and the unit median by 1.8%. How can this be?