VIC Excerpt from the 2020 March Market report

By Jacqueline So | 12 Mar 2020

It experienced a shaky period in 2019, but Melbourne wouldn’t stay down for long as it closed the year as the strongest capital city market in Australia according to CoreLogic’s Home Value Index for November 2019.

It beat Sydney for the second quarter in a row as dwelling prices rose by 6.4% compared to Sydney’s 6.2% in the three months to November, and based on current trends these are poised to hit a new high in early 2020 after plateauing in May 2019. This increase in property prices is expected to be supported by activity from lifestyle buyers and baby boomers looking to retire.

“The Melbourne property market is slowly regaining its confidence, and the underlying fundamental growth drivers remain strong. Auction clearance rates are rising, and buyers are back in the market,” says Kate Forbes, national director at Metropole Property Strategists.

“Overall, property values will be underpinned by a robust economy, jobs growth, Australia’s strongest population growth, and the influx of a large proportion of all overseas migrants.”

These crucial factors continue to serve as a strong foundation for Melbourne and were able to cushion the market during the downturn. Thus, the city is expected to outdo Sydney through 2020, even if the rate of growth is not as intense as it is now.

“Melbourne rates as one of the 10 fastest-growing large cities in the developed world, with its population likely to increase by around 10% in the next four years,” Forbes points out.

“Melbourne is currently offering investors an opportunity to buy investment-grade properties counter cyclically in a buyer’s market, with little further downside and the prospect of the market moving forward again.”

Many buyers are taking the opportunity to buy into Melbourne’s premium market while growth potential remains strong.

“In Melbourne, top-quartile values were up 8.1% over the same three-month period compared with a 4.2% rise across the lower quartile,” says CoreLogic head of research Tim Lawless.

“Thus, although housing values are rising across each of the valuation cohorts, the recovery trend is most concentrated within the premium sector of the market. This is most evident in Sydney and Melbourne, where the top quartile of the market is outperforming the broad ‘middle’ of the market and lower quartile.”

Unit prices stay low

The suburb of Flemington is well known for being the home of the Flemington Racecourse, where the Melbourne Cup horse race has been run since 1861. In fact, Racecourse Road serves as the main commercial hub in this suburb, with shops, cafes and a railway station.

Flemington’s appeal to buyers can be seen in how consistently its prices have been increasing – the house market passed the million-dollar mark as values recorded an 8.5% boost in the 12 months to November 2019. Meanwhile, unit prices experienced a remarkable upswing of 14.6% in the same period; nonetheless, the median unit value remains quite reasonable at under $450,000.

Tourism: The suburb is home to the popular Flemington Racecourse, which hosts the Melbourne Cup

Amenities: Racecourse Road is a bustling hub, with shops, cafes and a train station

Top Suburbs : south brisbane , willoughby east , bligh park , cardiff south , redcliffe


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 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 an appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here