Six-month market growth trends to April
In Viewpoints, we take a close look at growth trends in sub-markets across metropolitan Melbourne and its surrounds over the past six months. The Point Data Micro-Market Price Index provides granular neighbourhood-level insights into patterns of property price movements across the marketplace. The map reveals a mixed picture for Melbourne’s property market. While the consumer confidence has been hit by the eleven-interest rate increases in the past 12 months, the confidence levels in some neighbourhoods are holding up well.
Like all Australian cities sub-markets are not created equal, with some neighbourhoods remaining resilient and even growing, while others have weakened further over the past six months. This can be partly attributed to investors and strategic buyers picking specific locations with higher grade homes that have continued to outperform other locations.
While many Local Government Areas (LGAs) have recorded flat average price growth on average, they still comprise both rising and falling neighbourhoods reflecting market segmentation based on buyer preferences.
For example, the LGAs of Bay side, Glen Eira, Stonington, Boroondara, Banyule, and Moonee Valley all have suburbs and neighbourhoods that exhibit mixed market performance.
Generally speaking, the eastern suburbs have been performing better than the western and inner[1]northern suburbs as demand for A-grade properties remain in short supply.
Inner-eastern suburbs, areas along the Yarra River, and neighbourhoods approximately 15km to the east of the CBD, including Manningham, Whitehorse, and Monash, have all performed well with 6-month growth, demonstrating strong growth.
Other strongly performing neighbourhoods include Wollert and Greenvale to the north, Delahey and Wyndham Vale to the west, and Rye and St Andrews Beach on the Mornington Peninsula.
Areas that have not performed as well over the past six months include Caulfield and surrounding suburbs, Mentone and Doveton to the south, Mornington and Seaford, and the broader LGA areas of Moreland and Maribyrnong.
Predicting future consecutive rate rises is uncertain, with inflationary pressures appearing to ease.
However, population growth and low vacancy rates will continue to put pressure on house prices, particularly in affordable locations that cater for international arrivals and where good quality stock is in short supply.
