Melbourne house prices rose by just 0.27 per cent in May, well below the growth recorded in the past six months, according to figures provided Residex.
While Residex reports that no Melbourne suburbs have recorded price falls – making it the strongest-performing market in the country – the pace of growth has dropped sharply in some top-end, family-oriented and first home owner areas.
Analysts caution that Melbourne’s property market remains healthy overall and that a slowdown was desirable and inevitable.
CommSec securities analyst Savanth Sebastian said: ”I think in Melbourne you will see [price growth] come back closer to zero over the next few months … The fact that the property market has survived the [global financial crisis] has made investors realise that it’s an attractive investment.”
Change in national dwelling values: May quarter 2010
| Sydney values | ↑ | 2.4% | (median price: $517,250) |
| Melbourne values | ↑ | 3.3% | (median price: $480,000) |
| Brisbane values | ↑ | 0.8% | (median price: $445,000) |
| Adelaide values | ↑ | 0.8% | (median price: $445,000) |
| Perth values | ↓ | 2.1% | (median price: $475,000) |
| Darwin values | ↑ | 1.6% | (median price: $481,775) |
| Canberra values | ↑ | 3.7% | (median price: $508,500) |
| Hobart values ? | ↓ | 1.0% | (median price: $340,000) |
| (Based on final April figures) | |||
Melbourne has the lowest rental yields, with gross rental yields of 3.5% for houses and 4.2% for units.