This article was first published by Scott Carbines, Property reporter, News Corp Australia Network on
MELBOURNE property’s price growth doubled the national average in the year to June, a new report shows — and experts say there’s more to come.
Figures released today by the Australian Bureau of Statistics show Melbourne’s average residential price increased 8.2 per cent during the 12 month period — the most of any capital city.
The boost was double the 4.1 per cent average of the eight capital cities combined.
Canberra homeowners enjoyed the next largest increase at 6 per cent.
But Sydney’s rise was below average at 3.6 per cent, after being neck and neck with Melbourne’s growth in the year to March at almost 10 per cent.
Darwin and Perth were the only two cities where the average residential property price dropped during the period, recording decreases of 6.5 per cent and 4.8 per cent respectively.
WBP Property Group chairman Greville Pabst said demand for property in the world’s most liveable city underpinned the Victorian capital’s strength.
“The reason property prices have continued to grow in Melbourne, in particular, is we have a short amount of stock and listings that are available for sale and that’s really driving price growth in this state,” he said.
Mr Pabst pointed to strong recent clearance rates of about 78-80 per cent at auctions, multiple bidders, and a listings drop of about 20 per cent from the same time last year as positive signs for homeowners.
“So that shortage of stock is going to underpin, I think, pretty strong growth for the rest of the year,” he said.
McGrath founder John McGrath also tipped the Melbourne market to remain strong.
“I think the market is going to continue to be very sound. I think the medium and long term fundamentals are very strong. Overall, there’s still greater demand than supply,” he said.
The report also shows Melbourne’s average residential property price increased 2.7 per cent in the three months to June, just behind Sydney’s growth of 2.8 per cent during the same period.