Melbourne: delving beyond the data – John McGrath

I have previously talked about Melbourne and what it offers to our country’s many eager buyers. As I said then, this capital city can give buyers key opportunities that other, more popular, cities can’t, such as a strong property supply.

At the same time, Melbourne has experienced far slower price growth in the past few years than other capital cities across the country, according to various reports and statistics.

This curious combination is why I want to discuss Melbourne again today. For a start, Melbourne offers a good case for how a strong, long-term supply of housing can significantly impact the market, and in doing so, help buyers.

But first, to the latest Melbourne data from Cotality’s May Home Value Index report, bearing in mind that autumn is a traditionally quieter season for the overall property market. In addition, April included the Easter long weekend while some states had an Anzac Day long weekend too.

Melbourne houses are now selling for a median of $972,734, following a 2.5% annual increase. This is the lowest median in the country, bar Hobart and Darwin, and the lowest growth rate of all capital cities. Melbourne’s unit median of $641,690, after a 0.9% yearly rise, remains one of the lowest, excepting Hobart, Darwin and Canberra.