fbpx

Eastern Suburbs Forecast

What’s The Forecast for the Eastern Suburbs Market?

Foreign investment, which fuelled our inner city apartment high rise boom, is expected to more than halve this year from 40,000 to 15,000 transactions. This may be in response to rising concerns that Melbourne is heading for an oversupply of apartments as well as punitive measures introduced in the 2017 budget.

The eastern suburbs market however, is unlikely to experience these problems. We explore housing price trends, growth suburbs and other real estate forecasts in the area.

Are Units a Good Investment?

Greater Melbourne recorded a 29 per cent increase in completions at the end of 2016, with 18,000 apartments making their debut on the market. Vacancies are likely to rise in Melbourne over 2017 as more and more high-rise apartments are completed. However, Docklands, Southland and other inner city areas are expected to be the epicentre of the apartments oversupply.

This problem is unlikely to affect the Eastern suburbs market as migrant populations look for affordable apartments in areas like Box Hill, Blackburn, Nunawading, Ringwood and Doncaster. Growth figures for units in these areas are currently sitting between 9 and 10 per cent.

Budget Measures

Measures introduced in the 2017 federal budget are also likely to deter foreign investment in property, as the government gives preferential tax treatment to first home buyers, tightens deduction rules around negative gearing and introduces a ‘host tax’.

The latter of these policies imposes an annual charge on residential properties that are unoccupied or available to rent for at least six months in each year to dissuade foreign property investors from leaving them vacant.

What’s Driving Property Price Growth?

At Noel Jones, we believe economic growth, jobs growth and population growth at the local level ultimately has the greatest influence on housing price trends and growth. Investors should keep an eye on local town plans and buy property close to quality services and amenities.

Share:

More Posts

Tips For Finding The Best Real Estate Agents Melbourne

Selling or buying a home is one of the biggest transactions you’ll ever make. Your sale or purchase comes with significant legal and financial repercussions. As such, you need enough planning and understanding before finalising the transaction. One person who will be at the heart of this whole process is your real estate agent. (1) Finding the right real estate

Market Update May 2022

The month of May saw us witness a slight adjustment in property prices after a significant and prolonged period of growth, the third-fastest in Australia’s history.  Whilst those currently transacting in the market are seen to be operating with a little more caution, there are still a large number of buyers looking to purchase both homes to live in, and

family_friendly_suburbs

Which Are The Best, Family-Friendly Suburbs In Melbourne’s East?

Do you find yourself amid a lifestyle change? Perhaps a new baby is on the way, or the children are growing and need more space to call their own. For many of us, finding a bigger home to accommodate a growing family is something we’ll encounter during life’s journey and may involve deciding which suburb will suit our growing families

Top tips for selling in winter

When warm weather strikes and an abundance of flowers burst into bloom, it has traditionally been the time people choose to sell a home. Spring and summer see property listings surge, but sellers are cottoning on to the advantages of putting up that “For Sale” board in winter. With a slightly different approach, that coveted sold sticker could be up

Send Us A Message