02 Jun 2017

Number of million-dollar Melbourne suburbs quadruple in five years, REIV says

REIV president Joseph Walton said buyers priced out of inner suburbs were casting their eye out, buying up properties in the middle ring. “The premium end of the market had traditionally been confined to the inner suburbs, however there’s been a bridesmaid effect that’s driving growth into the middle suburbs,” Mr Walton said.

Property prices have been booming in Sydney, Melbourne and Brisbane, leading to concerns about housing affordability, particularly for first home buyers. The NSW Government announced a number of measures to try and give first home buyers and edge over investors, which followed similar measures introduced by the Victorian Government, including stamp duty concessions.

There is much discussion about whether the property market is in the midst of a housing bubble about to burst. Property analyst CoreLogic believes prices will slow down in the coming months, more in line with a correction, rather than a collapse.

Mr Walton believes prices in Melbourne will continue to head north. “In terms of where Melbourne is going, the market is strong. There’s been no substantive data that indicates there’s going to be downfall,” he said. “The key growth drivers to Melbourne real estate are population growth, which continues to be particularly strong, migration into Melbourne is amongst the strongest in the country, a low-interest rate environment and low supply to the market place and very, very strong demand. “So I think all of those things are going to drive the market in a positive direction.”