What's happening to Melbourne dwelling prices? Pete Wargent

Sceptical though I am about reading too much into short-term data, RP Data's Daily Home Value Index is always entertaining and is showing some strong indications of property price rises.

It's also worth noting that all property types within a city do not move in a harmonious manner as statistics at the macro level might seem to imply.

And in fact, Melbourne is perhaps a prime example of a city with property markets with deviating prospects (high rise inner-city stock and remote fringe suburbs may fare less well than quality dwellings in landlocked middle suburbs, for example).

Source: RP Data

Dwelling prices in Melbourne are reported as being up by 6.87% quarter on quarter, with I find remarkable, although the gains year on year are notably less dramatic at 5.70%.

As for Sydney, it's equally remarkable to think that as recently as the first week of June commentators were talking about prices possibly being in a downtrend (they quite obviously weren't) due to an instantaneous negative consumer response to the budget.

Since June 9, Sydney's dwelling prices are also reported as being up by more than 7%, disproving the theory.

The numbers for the last quarter aren't really backing me up here, but my gut feeling is that Sydney has stronger fundamentals than Melbourne at this point in time.

What about elsewhere? There is talk of slowing jobs growth in Perth as the mining boom shifts away from construction and towards production. Prices remain up very strongly year on year, but gains seem to have slowed up.

There appear to be tentative signs of life in Brisbane and perhaps better days ahead for the sunshine state it would seem.

The only city where prices remain below where they were a year ago is Adelaide, although with interest rates looking to be locked at bargain basement levels for some time to come, moderate rises would surely be on the cards.

whether or not the city can recapture its previous peaks of 2010 only time will tell.

Dwelling Prices graph

Pete Wargent
is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

His new book 'Four Green Houses and a Red Hotel' was released on 1 September 2013.

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

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