Melbourne unit prices to overtake Sydney by 2014

According to research by Residex, average unit prices in Canberra, Darwin, Perth and Melbourne were all within the AU$370-395,000 range at 31 August 2009. However, the company's predictive price modelling showed a slow crumbling in Canberra, Darwin and Perth over the next five years, while Melbourne sailed ahead, even eclipsing Sydney by 2014.

"An interesting point that we often overlook is that Melbourne housing was once more expensive than Sydney housing," noted Edwards. "It is only since the Second World War that Sydney moved to hold the mantle."

Edwards said that Melbourne unit values would leap by over 30% in the next five years to reach AU$513,689. Sydney would only rise 5.6% in the same period, from AU$424,000 to AU$447,770. Darwin units, whose prices have been pushed to unsustainable levels in the last two years, would be hardest hit, dropping 22% from their current level of AU$372,000 to AU$289,216 by 2014.

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