The ANZ June 2010 report about inner Melbourne apartments highlights the following points:
- The Victorian housing market is fundamentally under-supplied by about 47,000 dwellings
- This will provide a solid and favourable backdrop for the broader housing market, both in terms of engaging construction and housing finance activity, also also in protecting dwelling values
- The Victorian economy has out-performed all other state economies in the post-GFC recovery phase
- Intra-metropolitan population movements provide considerable growth prospects for inner-Melbourne's population
- A conservative estimate for inner Melbourne housing demand over the next 5 years is around 3,1000 to 5,7000 dwellings per annum
- Housing supply will grow at an estimated annual average of 3,700 to 4,500 dwellings
Apartment prices in Melbourne
- An expected lift in rental vacancies towards the end of the development cycle will be frictional rather than structural, reflecting market 'indigestion'.
- This could see inner Melbourne prices fall in the out-years. however, given medium and longer term fundamentals are favourable, this weakness will only be temporary
Prices speak volumes about balance between demand and supply - dwelling prices
- Inner Melbourne dwelling prices have generally outperformed the broader metro average with a notable re-rating evident through 2007. Some 'clawing' back of relativities has been evident since then but the ratio remains slightly elevated
- The fundamentals for the broader market remain sound with sizeable pent-up demand, incomes growth and strong population likely to underpin housing valuations in the years ahead
- A slowing will become evident over 2010 and into 2011, primarily reflecting higher interest rates and the emergence of affordability constraints. While these will weaken trajectory, they are alone unlikely to generate price falls
If you are interested in buying
property in Melbourne, speak to one of the property and finance consultants at Intellichoice on +61 7 3624 1900 or email
info@intellichoice.com.au. Alternatively, visit
www.intellichoice.com.au for more details.
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