“Another strong year for Melbourne with continued population growth exceeding previous expectations and development continuing…”
That first paragraph from Herron Todd White’s (HTW) “Month in Review” Report out this week sums up the mood of the market pretty well.
Other highlights of the Report:
- Strong population growth and strong demand for inner city living soaked up most of 1600 new City Apartments that were added in 2017, reflecting a tight 1.8% rental vacancy rate
- Inner City Apartment sales though did slow in the latter half of 2017 due to tougher lending policies, more prudent lending to investors and the Chinese Government enforcing more stringent controls over their Nationals taking funds out of the country.
- Moderate growth in the Northern Middle Ring Suburbs of Craigieburn, Mickleham and Kalkallo who mainly attract young couples and families, and recently arrived migrants looking for affordable, spacious housing.
- Craigieburn median house prices rose 22.7% to $540,000 (source: REIV)
- Inner Northern Suburbs of Brunswick and Northcote remain popular and increasingly attractive to downsizers and empty nesters.
- Brunswick median house prices rose 21% to $1.27 million
- The Outer South East performed more strongly than expected in 2017, driven by low interest rates, strong population growth and affordability.
- Berwick Waters and Clyde North have seen the strongest price growth.
- A 400 sqm block of land at Berwick Waters that originally sold for $259,000 in September 2016 was resold last month for $386,250, reflecting a 49% price increase in 14 months
- A 400 sqm block of land in Delaray Estate, Clyde North that originally sold for $231,900 in August 2016 was resold in October 2017 for $336,221, reflecting a 45% price increase in 14 months
- Ringwood achieved a 4.9% increase and Ringwood North a 9.5% increase in median house prices in 2017 to $935,000.
- Melbourne’s Inner Western Suburbs remained relatively stable.
- Sunshine median house prices increased 4.6% to $886,500. Sunshine North rose 5.04% and Ardeer 7.46% to $687,500.
- The Western Growth Corridor of Melton, Rockbank, Tarneit, Truganina and Wyndham Vale remain of the predominant areas of both population and development growth in 2017.