According to the Herron Todd White’s (HTW) Monthly Property Report released today, Melbourne’s residential property market is expected to remain generally stable in 2018.
Population growth is expected to continue to be a major driving factor with Melbourne’s population growing by 126,175 in the 2016/17 financial year, the largest growth rate of ANY Australian Capital City.
A few key standouts I thought I’d share:
- Residential Estates in the out suburbs of the north, south-east and west will continue to expand with house and land packages remaining a popular choice for first home buyers and families.
- Older houses in the Middle ring suburbs of Keilor East, Preston, Box Hill, Claytonand Bentleigh are being redeveloped into townhouses and small-scale apartment complexes.
- Inner City apartment buildings are in various stages of completion and concerns remain around off the plan apartment purchases, due to supply outstripping demand in some areas.
- Mernda, located approx 27km north-east of Melbourne will be worth watching in 2018. According to REIV, median house prices have increased 31% in the past 2 years to $590,000. HTW expect to see further growth and development of Mernda and surrounding suburbs thanks to the extension of the rail line. Mickleham is another Northern Suburb to watch in 2018.
- In the South-East, Packenham is the Suburb to watch in 2018 with median prices have increased 27% over the past year to $520,000.
- The Outer Bayside Suburbs of Chelsea, Carrum and Seaford are popular areas for Investors and Developers looking for property that has the potential to be subdivided and redeveloped.
- Ringwood, Heathmont and Mitcham have exhausted their supplied of potential redevelopment sites and are approaching values of over $1 million.
- The Inner North-Western apartment market should be treated with caution, particularly in the suburbs of North Melbourne, West Melbourne, Travancore and Parkville.
- The middle ring Western Suburbs of Albion and Ardeer will be interesting to watch in 2018 with median prices for a 4-bedroom house increasing by between 27-32% in 2017.
- HTW expect to see rapid growth to continue in the outer western suburbs of Melton, Wyndham Vale, Werribee and Tarneit in 2018 with demand remaining high and a number of new estates to come onto the market with land pre-sales.