Investing in Melbourne

Investing in Melbourne

• Posted By David Brown

Melbourne Investment

Melbourne’s property market was one of the highest performing in the country during the pandemic induced 2020-2021 property boom. Melbourne has seen 17.3% gain in values since the pandemic. With the market peaking in February this year. Melbourne’s median house price fall slightly in November by 0.9% to a new median house price of $924,492. Over the quarter prices have shown a decline of 6.7%. So, although prices are beginning to drop, Melbourne is still a strong long-term investment. Melbourne is still on track for its population to surpass Sydney and becomes Australia’s largest capital city by 2030.

This recent downturn in Melbourne’s property market is creating a window for property investors to get a strong return on investment (ROI) if they are willing to stay in the market long-term. It is inevitable that in the future, interest rates will drop, and inflation will once again come under control, the Melbourne property market will come back stronger than ever. For those that are willing to take the risk now, they will be reaping the rewards when the market bounces back. With international borders finally reopening, Melbourne will see an influx of new residents putting pressure on the already tight rental market.

CoreLogic 2022

What to expect in 2023

The question on everyone’s lips is after the pandemic proeprty boom, will the market crash? During the pandemic property boom Melbourne saw house prices increase by 21%. The market saw the peak in February this year and has since seen a drop of 3%. Even with the recent decline in prices, since March 2020 house values are still up by 8.6% or roughly $24,200. As the market continues to cool, the number of home sales is also trending downward, this is estimated to be down by 18% in the June quarter compared with the same period last year. It is also showing the strategic investors are still highly active in the market. It is still expected prices will continue to fall at its current rate. It is hard to say if it will drop below pre-pandemic prices.

It is hard to predict what will happen to the Melbourne market in the coming years. The market is facing conditions that have never been seen before. What can be said is the Melbourne property market in the past has always been a strong investment choice for the strategic investor.