Melbourne’s Property Market Sees a Slowdown as Brisbane Surges Ahead

Melbourne’s property market, once a powerhouse in the Australian real estate scene, is currently experiencing a significant slowdown in growth, according to recent data from PropTrack. For the first time in over a decade, Brisbane has outpaced Melbourne, with its median home value now standing at $951,000, surpassing Melbourne’s $912,000.

This shift marks a notable change in the dynamics of Australian real estate, where Melbourne had long enjoyed robust growth thanks to factors like its strong job market and high levels of migration. “Melbourne has long been one of Australia’s strongest property markets alongside Sydney, thanks to its robust job market, high migration from overseas and interstate, and its reputation as one of the world’s most livable cities,” explained Karen Dellow, senior audience analyst at PropTrack.

The slowdown in Melbourne’s market is partly attributed to the impacts of the pandemic, which hit the city particularly hard. “Melbourne lost more of its population to interstate migration and faced closed borders, which led to many investors leaving the market due to low demand for rental properties in the inner city,” Dellow highlighted.

While Melbourne’s prices have fallen 3.89% below their peak before the downturn, other cities like Sydney, Brisbane, Adelaide, and Perth have surpassed their previous highs. A Residential Audience Pulse survey by realestate.com.au found that only 19% of Victorian respondents considered it a good time to sell, significantly lower than in Queensland and New South Wales.

Despite these challenges, Melbourne’s property market remains active. June sales figures were up 16% compared to the previous year, though more than a third of properties sold for less than the asking price—a stark contrast to Brisbane and Adelaide where over half the sales went for more than the asking price.

Dellow remains optimistic about Melbourne’s future, suggesting that the city is “undergoing a period of adjustment, with prices normalising after decades of strong growth.” Both buyers and sellers are still actively participating in the market, indicating a period of normalization rather than a decline.

As Melbourne adjusts to these new realities, the broader implications for Australia’s property market remain to be seen, with many eyes watching how long Melbourne’s period of correction will last and how it will impact the overall market landscape in Australia.

Reference:

https://www.brokernews.com.au/news/breaking-news/melbournes-property-market-adjusts-285258.aspx