Melbourne’s prolonged downturn is priming the city for a strong rebound when interest rates fall, experts say.
Already a subscriber?Melbourne’s housing market could dominate the other capitals when interest rates fall, as improving affordability and rising rental yields attract investors and home buyers back, experts say.
“History tells us that as the affordability deteriorates in other capitals and improves in Melbourne’s favour, that will eventually set up a sharper recovery in theHowever, the timing of any rebound in Melbourne remains uncertain as values continue to drift lower and interest rate cuts may not occur until the middle of next year amid stubbornly high inflation.CoreLogic’s daily home value index shows Melbourne home values fell by 0.
Melbourne’s poor performance since the onset of the pandemic has pushed its home values 33.1 per cent lower than, the widest gap since October 2000 and well below the 19.7 per cent average difference in the past 20 years according to CoreLogic. Melbourne’s undervalued housing market could become more attractive to investors compared to the other capital cities, Mr Lawless said.
Dr Oliver said affordability would diminish further this year across Adelaide, Brisbane and Perth as prices continued to climb higher.could remain strong for a little bit longer, but eventually the affordability constraints would start to bite and there would be less incentive for interstate buyers to move into these capitals,” he said.
Meanwhile, unit prices in Box Hill South, Mont Albert, Box Hill, Burwood, Blackburn North in the inner east climbed between 1.6 per cent and 5.7 per cent, after values slumped by up to 8.1 per cent in the previous three months.
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