What’s currently going on in the Melbourne property market?
Melbourne is a competitive market when it comes to the property sector – there's no denying it's catching up with its big brother up the coast, Sydney.
The latest CoreLogic RP Data monthly indices show that the median value for all dwellings in May was $784,400 for Melbourne, and $955,290 for Sydney. While Sydney's overall value still sits atop the pyramid, Melbourne's growth was 10.14 per cent over the last 12 months, and Sydney came in at only 8.93 per cent over the same time period. Melbourne is catching up, slowly but surely, and savvy investors are already taking steps to make sure they're involved in the growth.
If the prospect of getting into the property market excites you, but you're unsure of where to start, then a buyer's agent in Melbourne is your answer. Specialist knowledge, great relationships in the industry and a passion for helping people buy into the most rewarding investment in the country combine to make for a fantastic partner to walk you through the buying process. And Melbourne is the place to be right now – don't believe us? Take a look at some of the data below. You might be surprised.
Melbourne – the new shining star in the property landscape
Data from Jones Lang LaSalle (JLL) states that while there has been a large number of apartment transactions over 2015, there are set to be significantly more heading towards 2020. Last year, 2,637 apartments were sold in the city, and while that was seriously down in the previous figure (by 13.6 per cent), the number of approvals and new constructions flying up around the place will more than make up for this drop.
Building up and not out is a fantastic way to plan and prepare a city for growth.
Approximately 13,700 will be under construction between now and 2020, while a further 10,000 are being marketed and around 13,000 have had plans approved for construction. Close to another 40,000 new apartments in the city will ensure that the sales don't fall again, and this new high-rise lifestyle is just what Melbourne is designed for. There are so many wonderful, wide-open spaces around the cultural capital of Australia, and these won't be impacted at all with the new planned buildings. The heartbeat of Melbourne lies on the Yarra River, and this is a landmark that Australians can count on in the city for a very, very long time.
Building up and not out is a fantastic way to plan and prepare a city for growth. But how do apartment prices compare to house prices?
Another JLL report on the Australian Residential Market for April 2016 states that the national median apartment price is $480,000, while the Melbourne median is only slightly higher at $523,100, as researched by CoreLogic. On the other hand, the median house price is $575,000, but Melbourne shows a much higher figure, at $831,100. It's still important to remember that these numbers are medians, and there are 50 per cent of properties above and below that number – the Australian property market is extremely accessible to investors or buyers with any level of experience. It wouldn't hurt to have a professional opinion or two thrown in for good measure from a buyer's agent!
What else does Melbourne offer?
Aside from a very affordable apartment market and an incredible prestige offering in Toorak and St Kilda East, to name but a few suburbs, Melbourne is growing closer and closer to being Australia's biggest city in more than one way.
A report from McCrindle Research outlines how by 2056, Melbourne will have overtaken Sydney by population, reaching the nine million mark. If the current growth of Melbourne property continues, it will also soon overtake Sydney as the highest median valued city in the country, and that's something investors should be looking at with intent.
Capital gains are almost guaranteed in a market such as this – growing so quickly, and not unsupported by population growth, either. The CoreLogic RP Data Pain and Gain Report from December 2015 shows that 97.5 per cent of houses sold last year made capital gains for their owners. That figure was second only to Sydney (98 per cent). There's a significant chance that if you buy in Melbourne, you'll be seeing capital gains a few years down the track.
In fact, buying in a suburb such as Monash will really set you up for the future. Home of the famous Monash University, 98.3 per cent of properties sold there in 2015 made capital gains, and the average term that a home was held by its owner was found to be 13.5 years. That might seem like a lot, but so is the median gain amount – $566,975.
That's an absolutely staggering amount, and you could get into the market early by talking with a Cohen Handler buyer's agent so you can take advantage of numbers like this when the real boom happens.
Make your move today – what's stopping you?