Melbourne’s houses went up in value by 11.3 per cent in 2015, the best annual growth since 2009.
As has been predicted for some time, property experts are reminding the industry that the healthy growth figures aren’t sustainable this year and things will slow down.
The figures come from the Australian Bureau of Statistics and show that there were price gains across nearly all segments of the property market, with some of the best results coming for property cheaper than $570,000, and more expensive than $870,000.
Despite an oversupply in some areas, apartment prices rose 4.4 per cent over the year.
While Melbourne’s auction market has been running hot so far this year, with clearance rates above 70 per cent, house prices are expected to slow in the March quarter. Domain Group chief economist spoke to Domain.
“A lot of the capacity to push prices up has left the market; and that’s lower interest rates and higher incomes,” he said.
“Even though properties are turning over at auction, we’re not getting that high-end prices growth, which does push affordability downwards.”