10 Melbourne suburbs set to go from doom to boom after AFL Grand Final
A Melbourne home price surge is tipped to kick off just after the AFL Grand Final, with 10 suburbs set to lead the city into a fourth-quarter comeback. SEE THE LIST
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A Melbourne home price surge is tipped to kick off just after the AFL Grand Final, with 10 suburbs set to lead the city into a fourth-quarter comeback.
New research from Canstar and Hotspotting.com.au revealed Melbourne is in the midst of a “huge uplift” in sales volumes, a pattern that has historically preceded major market moves.
Long-considered battler ‘burbs Frankston and Mill Park head a list of 10 “rising star” suburbs based on sales volumes, quarterly price growth, vacancy rates, rental growth and infrastructure spending.
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But Hotspotting.com.au founder Terry Ryder said Melbourne would already be in a boom if it weren’t for the state’s “idiot politicians”.
Mr Ryder said the region had low rental vacancy rates, experienced a huge uplift in sales activity and an influx of overseas migrants, all of which were factors that indicated it would perform better in terms of home prices than it did last year.
He added that Victoria’s significant infrastructure spending was taking away qualified and skilled people out of the homebuilding industry at a time when the population was increasing and the state government had building targets to meet.
“The residential construction industry has so many problems; there’s no hope in hell of any of those targets about the construction of new dwellings being met,” he said.
“There’s shortages of personnel as well as shortages of material and that’s pushing up prices, it’s making it hard for projects to stack up financially.”
Mr Ryder said the Victorian government’s policies on property taxes were holding back the residential market when they should be encouraging investment to generate solutions to the shortage of dwellings, particularly rental accommodation.
“The policies they’ve been implementing, definitely with taxes, is just such a discouragement to investment that’s exacerbating what is already a serious problem,” he said.
“It’s such a powerful city in the Australian landscape, but it’s been hampered by idiot politicians.”
He said that if those impediments were replaced with incentives, Melbourne could be the number one residential market in the nation and predicted prices to take off around the September quarter this year.
Personal finance expert and Canstar editor-at-large Effie Zahos said there was a rare split between Sydney and Melbourne’s market at the moment, which had often operated at a similar pace in the past.
“There is definitely stronger demand in Sydney as opposed to Melbourne which may be a bit behind,” Ms Zahos said.
“What’s interesting in both cities is that people are going back to them, which is breathing new life back in. There is a lot of push for people to go back into their places of work.”
Buyer’s advocate Cate Bakos said Melbourne’s home prices had held firm despite an onslaught of new listings, but buyer’s had soaked them up.
She said her prediction was that even in the colder months, buyer demand would remain strong and that’s when prices would start to rise.
“I also predict that as we get increased talk of interest rate cuts, we will see more buyers coming into Melbourne,” she said.
“Combine that with investors from interstate who are seeing the value proposition in Melbourne; they’re looking for an opportunistic buy given the disparity is growing between us and other capital cities.
“For the opportunistic people or for anyone who’s wanting to look at contrarian investing, Melbourne has to be on their list.”
TOP TEN MELBOURNE SUBURBS FOR NEXT BOOM
Suburbs – Median House Price – Median Unit Price – Vancacy Rate
Ascot Vale – $1.325m – $595,000 – 1%
Boronia – $840,000 – $645,000 – 0.7%
Brunswick East – $1.3m – $565,000 – 0.7%
Collingwood – $1.24m – $635,000 – 0.6%
Frankston – $720,000 – $485,000 – 0.8%
Mill Park – $765,000 – $490,000 – 0.5%
Mitcham – $1.2m – $810,000 – 0.7%
Northcote – $1.665m – $625,000 – 0.5%
Nunawading – $1.19m – $825,000 – 0.8%
Source: Canstar/Hotspotting.com.au
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