An almost $10,000 fall in the value of a typical Melbourne median house in the past year has made it more affordable than Brisbane and could soon drive an influx of investors.

PropTrack’s latest Home Price Index report revealed the city’s median house value fell $9200 from $921,211 in July, 2023, to $912,000 in July, 2024, down 1.01 per cent.

But the Victorian representative for the Real Estate Buyers Agents Association of Australia (REBAA) now believes it’s a good time for investors to swoop, even as large numbers of existing landlords offload rentals in response to the state’s property tax regime and rental reforms.

PropTrack senior economist Paul Ryan predicted Melbourne home values would remain flat or rise slightly in the next six months, especially around spring when more buyers tended to be in the market.

“We’re getting closer to rate cuts, although that may be late next year, more stock on the market, more housing construction, income growth and tax cuts,” he said.

“So broadly, this has been a pretty good period for Melbourne homebuyers and Victorian homebuyers.”

However, the median cost of a Melbourne unit increased from $616,472 to $619,000 in the 12 months to July.

The Victorian representative of the nation’s pre-eminent home buyers association Luke Assigal said although property investors were increasingly listing rentals for sale because of the state’s latest land tax polices and rental reforms, now was an opportunity for new investors.

“By homing in on the right locations and keeping an eye on quality, both investors and homebuyers can find promising opportunities,” REBAA Mr Assigal said.

“Now could be just the right moment to step into Melbourne’s property market and be part of its next growth phase.”

The professional buyer added that the key drivers to the state’s real estate market were population growth and infrastructure development.

“Melbourne continues to attract a significant influx of new residents, both from interstate and overseas, with Victoria experiencing the biggest annual population increase out of the states,” Mr Assigal said.

Australian Bureau of Statistics (ABS) data showed Victoria’s population increased by 186,500 people in the 12 months to December 2023.

He added that the Metro Tunnel, West Gate Tunnel and Suburban Rail Loop would enhance connectivity and accessibility across Melbourne, improving the quality of life for residents as well as the viability of some areas for property investment.

Property Investment Professionals of Australia (PIPA) chair Nicola McDougall said despite the city’s “anti-investor rental reforms” and new land tax regime, Melbourne still offered sound property investment potential.

“Now is the perfect time to invest in Melbourne if (you) can look past the current market negativity,” she said.

National Property Buyers director Antony Bucello said the long-term fundamentals of Melbourne remained in place and the city was poised to rebound significantly.

Originally Published: Sarah Petty | News.com.au | 1 August 2024

https://www.news.com.au/national/victoria/melbournes-median-house-value-falls-nearly-10000-in-one-year-proptrack-home-price-index/news-story/fcd80075274aad6aa31e0b68caad7ed7?btr=2bada3b551976b917c13b2435d121123

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