The Melbourne market delivered results that differed from most Australian capital cities across June and the second quarter of 2024.
While our nation saw an increase in dwelling values of 0.7% across the month, Melbourne saw a marginal decrease in house and unit prices, down 0.2% and 0.3%, respectively. It also recorded a decline in its overall dwelling price of 0.6% in the June quarter.
While some Melbourne areas show annual price falls, those in municipalities where Noel Jones’s offices are located have grown. The City of Maroondah leads this trend, with house and unit medians increasing 6.4% and 3.8% year-on-year.
Core Logics Tim Lawless reported that a housing undersupply across most of the country is the primary factor keeping upward pressure on property values. Melbourne, however, is not experiencing issues with stock levels.
Instead, it maintains robust listing numbers, with the latest data showing figures 17.5% higher than a year ago and 13.5% above the 5-year average. This increased inventory is a steadying force against the price inflation observed in other markets, where stock levels are considerably lower.
The vacancy rate in Melbourne’s rental market has improved steadily in 2024, reaching a six-month high of 1.2% in June.
This is common in winter; however, the current rate is notably higher year on year. This trend indicates a gradual easing, potentially relieving some of the strain on renters while moderating the pace of rental price increases.
Several government initiatives should create further stabilisation, including a strategy expected to result in a migration decline, removing demand on rental housing as new arrivals acclimatise to their surroundings.
There are also efforts to boost home ownership through programs like the Home Guarantee Scheme, while stage 3 tax cuts are expected to offset the challenge of higher interest rates and increase the borrowing capacity of some buyers. PropTrack economist Paul Ryan believes these changes could particularly benefit first-home buyers and the lower end of the market.
If you have any property-related questions, we’d be happy to assist. Contact your local Noel Jones agent via phone or at noeljones.com.au
