Melbourne winning on affordability(!)
Alan Kohler's piece on ABC News last night had some tongue-in-cheek on Melb house prices vs the rest of the capital cities. Important to see the graph does show Melb growth in the last 5 years. It has been a roller coaster ride and commentators across the board, including the banks, are now saying they expect Melbourne to grow more strongly into 2026.
Some Melb suburbs that have grown strongly in the past 12 months are:
- Frankston +9.2%
- Tullamarine-Broadmeadows +6.8%
- Brimbank +6.5%
Cotality’s October Housing report says Melb prices were up 0.5% in September, 1.0% for the 3 months to September, and 1.9% over the past year. Most of the growth was in the lowest 25% and middle 50% of values at 1.1% and 1.6%, respectively, with only 0.4% of a rise in the top 25%. A trend seen across the other major capitals as well. Melb growth is still subdued vs Sydney, Brisbane, Adelaide and Perth that had higher growth across every cohort.
Cotality says that Melb is -2.7% below it's March 2022 peak, while Sydney, Brisbane, Adelaide and Perth are all at their record highs right now.
Additionally, the researcher says Australia is on it’s way to $12T as the total value of residential real estate, at $11.8T. That’s over 4x our GDP and total stock market values!
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