Melbourne Middle-ring Suburbs
Written on the 2 August 2017 by James Cagney
(A two minute read)
The latest data released reveals that Melbourne's property market is beginning to outpace Sydney's, and the experts believe this trend will continue as affordability, higher interest rates and migration patterns come into play.
In June according to CoreLogic., Melbourne's median dwelling price rose 2.71 per cent, compared with Sydney's increase of 2.21 per cent,
And, the year to 30 June, Melbourne price growth also outpaced Sydney's. Melbourne's median dwelling price rose 13.7 percent (to $913,060), while Sydney's median dwelling price rose 12.2 per cent (to a median price of $1,118,020).
Middle-ring suburbs are within 20km from the CBD of Melbourne. The Real Estate Institute of Victoria says "Large homes in Melbourne's Middle-ring suburbs were the best-performing property type in Victoria in June 2017."
"The price of four-bedroom homes in Melbourne's middle-ring suburbs rose 6.5 per cent to a median of $1,150,000 in June, outpacing all other Victorian property types and regions."
A four bedroom house in the inner- ring suburbs (10km from the Melbourne CBD) are just under $2 million. No wonder people are having to look towards the middle-ring and outer-ring suburbs.
According to CoreLogic combined change in national dwelling values from January 2009 to June 2017 (post GFC growth) have increased by 72.4% . During the same period Melbourne dwelling prices rose between by 101.4%.
All this is great if you own a property in the Middle-ring but as an investor the rental returns are around 2%. The good thing for Melbourne property market is "A rising tide lifts all boats in the harbour". The affordable outer-ring suburbs will benefit from the growth of the inner-ring and middle-ring suburbs. Plus your rental returns in the outer-ring are between 4% to 5% which makes investment property more affordable to hold.
The question is will this growth continue. You need to have a full understanding of the property cycles and the emotions that drive these cycles. Click >>> THE CYCLES to gain this valuable knowledge. In this link I reveal "The best kept secret of the rich". If you want to avoid losing your shirt in property make the effort to click on this link.
If you would like more information about the Melbourne market before you invest call James on +61 416 137 645 or Click >>> HERE .
This is not financial advice. You should not act solely on the basis of the material contained in this article for your investment strategies. Changes in government and legislation occur frequently and without prior notice and financial markets are unpredictable.
This information was written and compiled by James Cagney. The opinions expressed herein do not necessarily represent the views and opinions of his associates including
Thank you to the resources of Terry Ryder, Property Observer, The ABS, BIS Shrapnel, Michael Matusik, Property Monitors, Colliers, On the House, CoreLogic, RP Data, Residex, SQM, Herron Todd White, The Economy, NAB Residential Property Survey, Australian Bureau of Statistics, Peter Wargent, Port Phillip Publishing, Economy & Markets, Harry S. Dent and the many others for the material discussed above.
Author: James Cagney