With the release of the final data for 2014, Melbourne’s growth in property prices outstripped Sydney’s in the final month of the year, according to researchers RP Data and Core Logic. Their home value index showed Melbourne house prices rose by 1.6% in December, as compared to flat growth in Sydney and 0.9% growth across all capital cities. The monthly growth brought Melbourne’s cumulative growth for the year to 7.6%, with a median house price of $587,000.
The new year has brought with it the usual round of market predictions, which continue to vary according to the provider. Despite an abrupt about-face on rates late in 2014 which resulted in futures markets pricing in a 100% chance of further rate cuts this year, opinion has begun swinging back to the centre line over the holiday break. According to several leading experts, interest rates may remain on hold for the next few months, with the expected cut in February now less certain.
Regardless, a continuing low interest rate environment is expected to lead to ongoing buoyancy in the property market, with Greville Pabst of Property Observer predicting the value of established Melbourne units will rise by between 6-8% in 2015, with established houses 11-20km from the CBD set to rise 5-6%. Meanwhile, RP Data has also predicted Melbourne property will experience healthy growth this year, albeit at a slower level than in 2014.
After the extended Christmas break, optimism and energy traditionally peaks as the market comes back to full strength by the end of January. For sellers who are prepared with a well-presented and well-priced property, buyers anticipating good opportunities will be active and willing to transact.