Melbourne was one of the great property markets of 2007, showing an astonishing growth rate of 19.91% in median house price for the year to $469,000. The home of uber-culture was a favourite haunt for property investors and, according to property research firm Braxton Chase, the love affair looks set to continue although with some caution from enamoured buyers.
"Investor interest and market activity in Melbourne remains strong, though rate rises in the first quarter of the year are being felt throughout the metropolitan region, especially in the outer lying growth regions of the city’s north and west," says CEO Andrew Donnelly.
It is reflective of markets reacting to a coming back from the grand highs of record growth. Last year's increase is generally considered unsustainable, but the slow down from this recent peak may well prove a soft landing if all other factors remain equal.
Braxton Chase believes the key to growth in Melbourne markets this year lays in major infrastructure. The touted mid 2008 completion of the Eastlink roadway is expected to bode well for the 40% of the cities residents that live in its corridor. The project will reduce travel time to the CBD and airport and is designed to ease congestion on major arterials.
"Big infrastructure projects have had a major influence on the residential market over the past couple of years, and we expect them to have a considerable effect for the year ahead. The soon-to-be completed M7 Eastlink will be an absolute boon for undervalued suburbs in Melbourne’s southeast," says Donnelly.