Melbourne property prices are finally recovering from several years of post-Covid stagnancy, as indicated by Domain’s House Price Report for the June quarter.
Melbourne recorded the second highest median house price increase in the nation behind Sydney, at 2.3%. Figures show Melbourne reached a median house price of $1,063,719 in June – up from the March median of $1,040,134. Melbourne unit prices also performed well, with a quarterly price increase of 2.7% to reach a median of $573,600.
While other capital cities experienced a property price boom in recent years, the Melbourne market stayed flat, with just 1.6% growth recorded over the past year. Only the Canberra and Darwin markets performed worse than Melbourne with negative growth, while Adelaide led the country with 11.5% annual property price growth, followed by Perth at 9.5%, Brisbane at 7.5%, Hobart at 6.5% and Sydney at 4.2%.
So what does this mean for buyers and sellers?
When Melbourne investors bailed on the Victorian property market due to rental and property tax reforms it opened the door to first home buyers who took advantage of a flat market and increased stock within the lower end price bracket.
But property price increases are now impacting first home buyers relying on capped government grants to get a foot in the door, unless they can take a flexible approach to the location and type of property they can afford. Young professionals with deposits saved and parental help may still find their way into their preferred locations thanks to recent interest rate cuts, but it is downsizers and sellers who aren’t repurchasing in Melbourne who will benefit from rising property prices.
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