The latest house price data from PropTrack shows that Melbourne continues to be left behind in this cycle’s housing boom.
Since the beginning of the pandemic in March 2020, Melbourne dwelling values have risen by only 16% versus a 39% increase across the combined capital cities:
The following chart plots prices across the five main capital city markets:
Adelaide (73%), Brisbane (72%) and Perth (72%) have led the nation in home value growth. Next comes Sydney with 39% growth followed a long way back by Melbourne (16%).
The next table from PropTrack shows that Brisbane’s median dwelling value has already soared well past Melbourne’s:
Analysts are now tipping that median home values in Adelaide will soon also overtake Melbourne’s for the very first time.
“We haven’t seen a period in the past where Adelaide’s median value has been above Melbourne’s”, CoreLogic research director Tim Lawless said.
“Given Adelaide values have been consistently rising by more than 1 per cent each month since March, there is a good chance we will see Adelaide’s median dwelling value surpass Melbourne’s”.
“It’s also likely we will see another fall in Melbourne values through August, which increases the chances of Adelaide overtaking Melbourne’s median”, Lawless said.
Separate data from Domain shows that Melbourne’s median house price has fallen sharply below the other capital cities, making the city relatively affordable:
The Victorian state government’s extra land taxes and charges on property investors have clearly had an impact on price growth.
These reforms have forced some investors to sell and driven demand interstate.
Victorian first home buyers are the winners since it means that housing has become relatively more affordable to purchase.
