Welcome to the Melbourne property market! We’ve been seeing some big changes over the last few years, leaving many buyers wondering what to expect next.
As market conditions continue to fluctuate, understanding the future outlook can empower you with the knowledge you need to buy and sell with confidence. This can help you get better value for money while protecting the security of your investments.
What’s in store for Melbourne in 2024 and beyond? We’ve collated the latest data to provide you with valuable insight.
The situation in 2023
In the wake of the pandemic in 2020 and 2021, the Melbourne property market saw a major boom, with prices rising by a whopping 15.8%, peaking in March 2022. Then we began to see a downswing, values falling 7.9% by January 2023.
The situation has been fast-changing and difficult for some buyers and owners to keep up with. Now? We’re seeing another shift. Over the course of 2023, Melbourne property prices have climbed again by 4.5%, showing continued month-by-month acceleration.
Many factors influence property prices, including features, local amenities, and proximity to Melbourne CBD or regional centres. On the whole, Melbourne is seeing a steady recovery that will continue to boost property value.
What to expect in 2024
Now it’s time to consider what’s coming in 2024. Experts predict that the 2023 market upswing will continue into the new year, with median house prices continuing to rise before stabilising.
Interestingly, growth and demand are expected to keep climbing in regional Victoria, as people search for lower purchase prices to negate the effects of ongoing interest rate hikes.
So far, both metropolitan Melbourne and regional Victoria show strong signs of market recovery. Most real estate professionals aren’t expecting another boom, but a slow, steady increase in prices could mean that purchasing now delivers a bargain.
Looking forward to 2025
Research indicates that Melbourne’s population could be set to grow by 1 million over the next 10 years. This means that demand for housing will soar, and upward pressure will be applied to prices.
According to KPMG, Melbourne’s housing market could even outperform the Sydney market over the next 2 years as external factors continue to drive growth.
What should you do?
There’s never a perfect time to buy or sell property, but understand the market can help you make informed choices that support better financial results.
Prices in Melbourne are higher than they once were, but so far, the rise is showing no signs of slowing down.
This means that if you’re still trying to break into the property market, buying now could save you money and allow you to make the most of future capital gains.
If you’re thinking about selling? Weigh up your options, and explore other properties you might be interested in buying. Is it really time to sell now, or can you wait until your home’s value has risen even further?
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