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

Home styling tips that won’t cost you a cent

It is so easy to update your interiors, now more than ever with the prevalence of online stores and the many homewares stores around but what if you simply don’t have the spare cash right now to update and improve your interior décor? Read on for some super savvy tips on ways you can update without shelling out any cash.

BMT answers your depreciation questions

The complexity of depreciation unsurprisingly has many scratching their heads. While investors don’t need to be depreciation experts, BMT Tax Depreciation has answered some of the most common questions on this area of taxation for you. Q. What is depreciation and how does it work? It’s the natural wear and tear of a property and assets over time. While all

April Market Update

April Market Update The first month of Q2 has started off strongly, with no new records set, but performances that have continued to be solid. Houses are selling well at auction, and although Melbourne’s clearance rate for April of 69.9% is 4.4% lower than the result for March, it does reflect a level of consistency. The result is also the

March Quarter Update

“Unprecedented” was one of the most commonly touted words of 2020, frequently used to describe the events being experienced due to the COVID-19 pandemic. Its use, however, has continued in earnest in 2021, but this time in relation to the increasingly robust activity being witnessed in the Australian property market. 2021’s Q1 results have delivered record outcomes in a number

Send Us A Message