Melbourne's property prices will continue to get a shot in the arm from lower interest rates and strong population growth this year, according to a market forecast by Upside.
The Victorian capital finished 2019 with a 6.1% quarterly gain in dwelling values. It is projected that Melbourne will continue to witness an uptrend this year, with houses posting a 1% to 3% increase and apartments recording a 2% growth.
"Melbourne property prices will be boosted by lower interest rates and strong population growth of about 2%," Upside said.
The Reserve Bank of Australia is expected to lower the cash rate further to 0.5% next month, as the overall economy continues to underperform.
Melbourne's unemployment rate is also poised to fall, boosting the overall appeal of the city to investors and homebuyers.
Furthermore, the slowdown in Melbourne's new housing construction will remain supportive of price growth as demand intensifies.
Brighton is poised to rise as one of the top property hotspots this year. Located just 30 minutes away from the central business district (CBD), Brighton is considered one of Melbourne's "Bayside jewels".
"A relaxed, coastal feel perfectly describes the affluent bayside suburb, which also boasts some of the best schools in Melbourne in addition to the quirky, bright-coloured bathing boxes that are a distinguishing feature of the Brighton shoreline. Perfect for growing families and those looking to invest for the future," the study said.
Carlton also possesses growth potential this year. Dubbed the best inner-city suburb in Melbourne, Carlton topped the list for lowest median unit value in Melbourne 2019 at $364,918, while also generating the highest yield rental return at 7.1%.
"Carlton presents as the perfect inner-city living sanctuary for young professionals, couples, and students alike. Bursting at the seams with vibrant atmosphere and a wealth of eateries and entertainment, everything is essentially walkable," the study said.
Another suburb to watch out for is Maidstone, which sits just about eight kilometres from the city-centre. It has the cheapest homes within the 10-kilometre radius of the city, with a median value of $833,514.