Property investors have been warned that Melbourne is likely to be Australia’s worst performing capital city for capital growth over the next few years.
Residex CEO John Edwards has said that, while the Melbourne market looks to be improving, he suspects that more corrections are on the way.
“We are expecting, over the medium term, for Melbourne to be the worst performing capital city in Australia,” he revealed in his market commentary for March.
This will particularly be the case in Melbourne’s unit market, he believes, due to the significant supply of new stock that is set to come to the market this year.
It’s not all bad news, however, as Edwards believes that the RBA’s 0.5% interest rate cut will prevent what would otherwise have been heavy losses.
“Today’s RBA decision should stop the heavy adjustment process which would have otherwise been inevitable in the Melbourne market, and it will help push all markets which were passed the bottom of the correction phase,” he said on Tuesday.
“The interest rate reduction is going to provide the much needed consumer confidence boost. Without some form of stimulus, we would have been likely to continue seeing housing values decrease across much of Australia.”
Where do you think the Melbourne market is heading? Have your say on our property investment forum.
RBA cuts rate by 0.5%, but will the banks follow?
Australia’s worst rental yields
Where are property prices set to rise?
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
east victoria park
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out