Source: Domain
Melbourne’s property market in 2024 showcased resilience amidst a backdrop of economic challenges, with a median house price of $1.04 million, as revealed by the Domain House Price Report for the December quarter. While this figure reflects a 1% decline over the year, it also highlights the market’s stability despite high interest rates and rising investment costs.
Key Highlights of Melbourne’s Property Market
Points | Explanation |
Affordable Opportunities for Buyers | Declines in house prices in areas like the prestigious inner east (down 7.5%), the Mornington Peninsula (down 3.6%), and the inner city (down 2.9%) have opened doors for buyers seeking opportunities in prime locations. |
Unit Prices Show Resilience | With a 0.8% rise to $577,000, unit prices reflect growing demand from buyers seeking affordable yet quality homes. This trend signals a shift towards more accessible property options. |
First-Home Buyers Take the Lead | First-home buyers now account for 26.2% of home loans in Victoria, well above the decade average of 18.6%, demonstrating strong confidence among younger buyers entering the market. |
Positive Trends Driving the Market
Dr. Nicola Powell, Domain’s chief of economics and research, highlighted several encouraging trends:
High Interest Rates Encourage Smarter Buying: Buyers are becoming more strategic, focusing on properties with strong long-term potential.
Investor Adjustments Create Opportunities: As some landlords sell unprofitable rentals, new opportunities arise for owner-occupiers and investors seeking value.
Evolving Buyer Preferences: Demand for quality, move-in-ready homes continues to grow, driving innovation and improvements in the market.
Dr. Shane Oliver of AMP noted that Melbourne’s balanced property supply prevents the sharp fluctuations seen in other cities, ensuring a more stable market environment. Julie Debondt-Barker, director of Property Home Base, noted that the market is shifting towards higher-quality stock, catering to buyers who value convenience and comfort.
As Melbourne’s property market adapts, opportunities abound for savvy buyers and investors. By focusing on quality properties and strategic investments, stakeholders can look forward to a brighter future. Despite the challenges of 2024, Melbourne’s property market offers numerous opportunities for growth and investment. With evolving buyer preferences and positive long-term trends, now is the time to explore the possibilities and make informed decisions.
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