Sydney appears to be no longer holding the spot as the strongest housing market in Australia. It looks like Melbourne has overtaken "the Harbour City" when it comes to the price growth.
ABC Australia reports that house prices in Melbourne have overtaken "passed Sydney as the nation's fastest growing, although they still lagged well behind in terms of absolute cost." Record shows that Melbourne's real estate property prices have increased about 2.5 per cent in January. Sydney on the other hand has only 0.5% increase. The figures are taken from the most recent CoreLogic RP Data.
According to the report, the house pricing growth of Melbourne makes the city :the fastest year-on-year property price appreciation of 11%." The capital of Victoria State has passed Sydney's, which house price growth has slackened "to its lowest annual pace in 29 months at 10.5%."
Huffington Post Australia says that Melbourne's house pricing might have also slowed down but not as much as Sydney's. It is noted that the Harbour City's slowing down of house pricing growth has signaled "a nervous 2016 for Sydney real estate investors but also potential for prospective first-home buyers."
Based from the Domain House Price Report for the December quarter, figures revealed that Sydney's mean house price has decreased 3.1% while Melbourne has increased about 1.8%.
Report also says that Tim Lawless, the Head of research of the CoreLogic RP Data, said that "all signs pointed to a strong investor market in Melbourne." Lawless also said in the interview that "the performance gap between Sydney and Melbourne is stark."
Motley Fool Australia warns homeowners that "the rise may just be a blip in a longer-term downward trend." So it is probably too early to rejoice. As noted, the dwelling growth prices of Sydney have hit its peak earlier than Melbourne.
It is reported also that the "auction clearance rates clearly show that trend, with Sydney posting a sub-50% clearance (45.2%) rate last weekend, while Melbourne continues to enjoy higher clearance rates (71.3%)." Obviously, "Sydney's sub-50% clearance rates now signify a falling housing market according to Macquarie analysts."
What are your insights concerning Melbourne's housing price growth? Let us know your opinions.
