For several years now, I have argued that Melbourne’s housing market is built upon weak fundamentals and is overvalued relative to the other major capitals. And yet, Melbourne house prices have grown strongly in recent times, driven by record demand from property investors.
This report revisits the Melbourne housing market and finds that while the upswing in prices likely has further to run, valuations are once again entering the twilight zone, making Melbourne housing an very risky proposition for both first home buyers and prospective investors alike.
Current state-of-play:
