March 2024 Quarter - Melbourne
- Posted By Chris Nicholson
Melbourne's residential property market experienced a shift in the first quarter of 2024, reversing its previous upward trajectory. Despite recent gains, both house and unit prices have faced setbacks, highlighting the market's ongoing volatility. This analysis delves into the recent trends and the broader implications for Melbourne's property sector.
Melbourne’s slow and steady pricing recovery reversed over the first quarter of 2024. House prices declined by $15,488 or 1.5%, following three consecutive quarters of positive growth. This was the steepest quarterly decline since the September quarter of 2022, wiping out the gains of the past two quarters, though house prices remain 0.7% above the same time last year. To fully recover, house prices need to recoup almost $62,000, as they are still 5.6% below the December 2021 peak.
Similarly, Melbourne’s unit price recovery stumbled after three consecutive quarters of growth, falling by just over $7,000 or 1.3% in the March quarter. Despite this setback, annual growth remains strong, at just over a two-year high, thanks to the previous quarters' stronger gains. Units now need to rise by almost $39,000 to fully recover, as they are currently 6.4% below the December 2021 peak.
Melbourne's property market faced a challenging start to 2024, with declines in both house and unit prices after a period of recovery. While the setbacks are notable, the annual growth figures indicate a resilient market with potential for rebound. The coming quarters will be crucial in determining whether Melbourne can regain its upward momentum and fully recover from the peaks of late 2021.