CEO's Investor Market Wrap
In recent years, the depressed Victorian property market has been a topic of near-constant discussion in both the media and the industry, with post- COVID state-specific taxes and compliance regulations prompting many investors to leave the market in search of better returns in other states where conditions have been more favourable.
In a more positive development, first-home buyers are now returning to the Melbourne market with renewed confidence.
The latest Australian Bureau of Statistics data reveals that 3,556 Victorian buyers who committed to a mortgage in July were new entrants to the market. This brings the total number of firsthome buyers in Victoria over the preceding 12 months to 39,336 — the highest in a 12-month period for the state since December 2021-22.
The rise in first-home buyers has been largely attributed to improved affordability, with
Melbourne house prices remaining essentially flat over the past two years. Property owners are also showing a higher propensity to sell, with 29% of owners surveyed in July 2024 by realestate.com.au believing that now is the right time to transact, up from a shaky 19% at the same time last year.
PropTrack reports that in Melbourne, total property listings have remained above historical averages throughout 2024, with July 2024 recording the highest number of listings since November 2018. This surge in listings is 24% above the previous five-year average, giving buyers more choice and opportunity to transact.
It’s interesting to note that this renewed seller confidence comes at a time when the market is slightly favouring buyers, with softening house prices and an increased number of listings.
In our view, these factors suggest the Melbourne market is now ripe for savvy investors looking for strong capital growth over the medium to long term.
According to the latest data, Melbourne’s house price growth currently sits at -0.18% for August and -1.46% annually, while house price growth in the rest of Victoria is at 0.04% for August and -1.74% annually. Compared to the national average house price growth of 0.22% for the month and 6.16% annually,
Melbourne’s price growth is lagging significantly behind other states. Brisbane, Adelaide, and Perth have recorded the fastest pace of growth among all capital cities over the past two years, with Brisbane property prices overtaking Melbourne’s this year for the first time in 15 years.
At Barry Plant, we believe all of this spells opportunity for savvy Melbourne buyers. However, as always, it’s important to select the right property to suit your investment strategy and to enlist exceptional professionals to help you manage it post-purchase. Our extensive network of sales agents and property managers is here to help you understand local market conditions in your preferred area.
We look forward to serving you.