Often rated as the world’s most liveable city, the Victorian capital of Melbourne is destined to become Australia’s biggest city within the next two decades. While the annual real estate price growth rate to June declined from the previous year, it still saw a 13.5% increase, according to CoreLogic.
Melbourne’s past five years saw prices surge 55%, but it’s an optimist who is predicting bull markets to continue – although experts aren’t predicting a crash; just a slow down.
Melbourne’s inner city housing market is still hot, but CoreLogic reports a 3.8% drop in apartment prices because of new developments coming online.
Stamp duty concessions came into force in July to assist first home buyers in Melbourne (similarly in NSW).
Perth, Western Australia
Perth is popular with regional investors because it is the closest Australia capital to Asia and is on the same time zone, and it boasts world-class educational facilities.
The skyline of the Western Australian capital features neon lights of major mining companies and it’s known for “boom and bust” cycles based on cyclical resource prices. Perth real estate prices inched up 1.3% in June of this year after an extended depressed market due to low resource prices (real estate prices dropped 6% year on year).
CoreLogic note that house prices in the west of the city only increased by 2.3% over the past ten years. However, Perth has the second cheapest housing after Hobart with the median house costing A$470,000 (US$360,230).