Melbourne set to claim property
January 25, 2008
MELBOURNE could outstrip Sydney as the most expensive Australian city
for housing within a year.
The average Melbourne
house price soared by 25.2 per cent in 2007, compared with 4.8 per cent growth
in Sydney, a
survey by a property group found.
"If Melbourne house values were to continue
on that trajectory they would topple Sydney as Australia's
most expensive within 12 months," Australian Property Monitors general
manager Michael McNamara said.
The APM housing price survey for 2007 found the average value of a house in Melbourne was $463,488 at
the end of last year, up from $370,059 in 2006.
house values rose to $553,357, from $528,105.
"The upwardly spiralling Melbourne
house values represent a boom-time market in anyone's language," Mr
"Whilst for some, buying Melbourne property
has slipped further out of reach, it has been a year where investors in Melbourne property market
have hardly been able to stop smiling."
But he said the explosive growth could prove unsustainable.
The survey also found house values rose by 20 per cent in Brisbane
to $425,368 and 20 per cent in Adelaide
But the housing boom in Perth
could be over, with values rising just 1.7 per cent to $508,776 - the weakest
growth result in the survey.
House values rose by 14.6 per cent to $506,570 in Canberra,
by 5.3 per cent to $443,917 in Darwin and by
11.3 per cent to $280,853 in Hobart.
Looking ahead to 2008, APM said the property market would be dominated by
uncertainty, as volatile stock markets, rising interest rates, slower economic
growth and higher petrol prices weighed on consumer confidence.
But Mr McNamara said the Sydney
apartment market, which grew by just 1.7 per cent last year to an average
$370,188, was undervalued and set to rise strongly.
"With Sydney apartments looking so cheap
compared to other capitals, and assuming there is a transfer of cash from
stocks to other asset classes, we have Sydney
apartments as our number one pick for growth over the next few years," he
In Perth, Mr
McNamara expects to see the start of a sustained period of weakness for house
But Canberra housing continues to perform well
and was set to overtake Perth as Australia's
second most expensive city to buy property.
(Source: The Australian, 2008)