Homebuyers in Melbourne could see lower prices in some of the inner suburbs in the future, but that doesn’t mean an easier time for them to close a sale. Sellers would likely to hold onto their properties as the price slowdown happens not only in the Victorian capital but elsewhere in the country. An industry forecast shows that home prices in Melbourne and Sydney are expected to fall by ten per cent in 2019.
Fortunately for buyers, there are other good places for an investment in real estate. In Whittlesea, Victoria, some developers have launched master-planned developments for land-only or house-and-land packages.
If you are looking for apartments, those in Mambourin, Mount Cottrell, and Wyndham Vale are selling like pancakes. Prices in these postcodes have only fallen by 1 per cent in June year over year. On the other hand, home prices slightly fell in Essendon North and Strathmore at three per cent during the same period. You should expect prices to continue falling for the next two years.
The national property downturn mainly stems from the stricter lending rules and the Reserve Bank of Australia’s official rate hike increase. ANZ economists believe that this will affect the downward movement of real estate prices.
The good news, however, involves a steady decline instead of a sudden crash in property values. Melbourne and Sydney will lead the country in terms of declining prices, so property owners in these areas are unlikely to sell in the next few years until the market sees an improvement.
Property buyers and investors should consider nearby places in Melbourne when choosing their next foray, as these areas may show some resilience to the current sluggish market. Competition among buyers in these communities may also be less noticeable, unlike in cities where some buyers are willing to pay a premium.