Melbourne property prices soar in September

Font size :

Investors swooped into the Melbourne property market, pushing property prices to nearly double digit growth in the September quarter, according to the latest Residex report.

House prices surged by 9.12% to $439,000 whilst units jumped by 8.57% as buyers snapped up properties in Melbourne's inner and middle ring suburbs. The affluent suburb of Kew notched the highest number of house sales for the three months ending September. Huge demand pushed median house prices by 10% to $1.12m. Over the last 12 months, capital growth climbed by about 19%.

Apartments in South Yarra and St Kilda were the most wanted, with each suburb racking up around 9% capital growth in the same period. Investors saw rental rates go up by more than 4% amidst shrinking rental supply.

Growth in Brisbane appeared to have moderated, with house prices rising by just 4.71% to $411,500 in the same period. Capital growth for units was also lower at 1.90%. On the bright side, rental returns for units averaged a healthy 5.10%, whilst houses achieved 3.92%.

Properties in Sydney continued to trudge along slowly with house prices growing by a meagre 0.49% to $572,000 and the unit market by 1.01% to $390,000.

Rents across the country continued to spiral upwards in every capital city, recording a $50 a week increase over the last 12 months, except for Hobart. Rental properties in Perth achieved the largest increase with a 36% jump year-on-year or an equivalent of $85 a week increase.

Whilst the strong overall performance of Australia's property market is welcome news for investors already in the market, the current property boom may contribute to higher inflation numbers that could result in another rate rise, according to John Lindeman of Residex.

"Rises in both house purchase prices and rents impact directly on the housing component of the Consumer Price Index (CPI), and the Reserve Bank of Australia will be closely watching the CPI figures due to be released on 24 October. Another rate rise would be bad for Sydneysiders, where house values in outer-southwestern areas continue to slump while big increases are recorded in the upper socio-economic suburbs," he noted.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Sep 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords