As rival markets taper off, the buzz about Melbourne grows ever stronger. Melbourne enjoyed more impressive growth than any other state capital in the three months to October, with Residex recording an impressive 10.17% rise. Added to a 17.87% boost in house prices year on year, the market looks in great shape going forward.
Country Victoria scored less impressive results overall, but still performed better than most states in the three months to October, WA and Tasmania excepted. Melbourne is the main attraction however, and its star is very much on the rise.
According to Andrew Donnelly, CEO – Braxton Chase, it had the best growth fundamentals of any capital city in 2007, and a positive outlook for the residential market should continue throughout 2008.
He believes that the ripple effect of gentrification and price growth is likely to reach Melbourne’s affordable middle ring suburbs by midyear. “Population movements, big infrastructure projects such as the EastLink freeway, urban renewal and government planning policies will drive forward growth, adding value to multiple regions within Melbourne,” he says.
While all of Melbourne’s inner ring suburbs have been performing strongly, Camberwell scored better than even Kew, Hawthorn and Toorak in terms of house price growth in the three months to October. Residex recorded a strong 12.01% rise in this period, compared to 25.53% year on year. The median priced house in Camberwell is $1,131,500, and the median rent is $450. Due to the high price tags, median rental rate for the suburb is a low 2.07%.