The housing market in Melbourne has made further progress towards a recovery, with the Victorian capital recording the third consecutive month of gains according to CoreLogic, lifting dwelling values by 3.4% for the September quarter. Sydney is also up by 3.5% for the quarter.
Bundling Australia’s two biggest cities together, CoreLogic head of research Tim Lawless believes that the strong rebound in Sydney’s and Melbourne’s housing market relative to other regions, can be attributed to a variety of factors. He said, “While all regions are benefitting from low mortgage rates and improved access to credit, economic and demographic conditions in New South Wales and Victoria continue to outperform most areas of the country. Population growth is higher, unemployment is lower and jobs growth is stronger, providing a solid platform for housing demand.”
Another factor cited by Tim as driving the strength in Sydney and Melbourne property markets could be higher levels of investor participation. The latest housing finance data from the ABS (to end of July) shows investors comprised 26% of mortgage demand in Victorian.
According to the latest QBE Australian Housing Outlook 2019–2022 Melbourne’s median house price is projected to rise by a total of 5% over three years to $810,000 as at June 2022. Several factors including strong population growth and falling building approvals will help prop up Melbourne’s house values.