Top 3 Property Market Trends from Melbourne’s First Financial Quarter

As we wrap up the first quarter of this financial year, Melbourne’s real estate market has revealed some interesting shifts. Investors are recalibrating strategies, migration is reshaping demand, and new patterns are emerging. Here’s a closer look at the three key trends we’ve observed:

  1. Investors Shift from Landed Houses to Inner-City Apartments
    This quarter saw a notable shift as investors sold suburban landed houses in favor of inner-city apartments. With a sharp increase in land tax for absentee owners, many investors now prefer inner-city apartments, which bring the advantage of lower land taxes and higher rental yields. This trend could impact Melbourne’s rental market by increasing inner-city housing supply, particularly in popular suburbs.
  2. Growing Interest from Interstate Investors
    Melbourne has recently attracted a surge of interest from interstate investors, particularly those from New South Wales, Queensland, and Western Australia. For the first time in 14 years, Brisbane’s median property value has surpassed Melbourne’s, and cities like Adelaide and Perth have also overtaken Melbourne’s average house prices, making Melbourne a more affordable option for investors seeking long-term value. This affordability has led to a marked increase in inquiries from these areas, boosting Melbourne’s profile as an appealing investment hub.
  3. Surge in Migration from New Zealand to Australia
    A significant rise in migration from New Zealand to Melbourne is impacting the local rental market, as many New Zealanders are drawn by better job prospects, higher wages, and broader career options. This trend reflects the rising living costs and housing challenges in New Zealand and has resulted in increased rental applications across Melbourne. With rental demand from New Zealanders now peaking, Melbourne’s rental sector may see lasting demand growth as this migration trend continues.

These trends illustrate the dynamic shifts underway in Melbourne’s property market. Changes in tax policy, comparative affordability, and migration are reshaping the city’s real estate landscape. As Melbourne continues to attract both local and international interest, staying informed on market trends is essential for investors, property managers, and renters alike.

These insights into Melbourne’s property market are drawn from key reports and analyses, which you can explore from these links below

Source:
https://cdn.rea-group.com/wp-content/uploads/2024/10/30001041/PropTrack-Rental-Report-September-2024.pdf

https://cdn.rea-group.com/wp-content/uploads/2024/10/09003701/PropTrack-Listings-Report-September-2024.pdf

 

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