Victoria Residential Prices Across the state, members are unanimous that the market has bottomed. Up is the only way to go, so price increases, although gradual, are expected in 2013 but will remain fairly stable for the coming six months, providing excellent ongoing buying opportunities. Even with improving market conditions, low new mortgage discharge figures, combined with a tough economy, will put a ceiling on any real price growth. Industry September quarter figures show the residential housing market in Melbourne has remained stable, with a median house price of $530,000 compared with the revised June quarter median of $525,000. Units and apartments in the city were also largely stable, with a 0.7% reduction to $442,000. For the first half of 2013, a majority of members anticipate house prices will hold, a smaller percentage expect a rise, while some drops are forecast for apartment/strata properties and land values.
Increase Decrease Flat
House Prices
Apartment/Strata
Land
46%
15%
31%
–
38%
31%
54%
47%
38%
Limited supply, ongoing demand and improving consumer confidence will drive price growth across all sectors, while oversupply and high building costs will be the foundation of price reductions in apartment/strata properties and land.
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First National Real Estate 2013 Property Market Outlook