Open Market Report Q2 2016

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Dwelling values in Melbourne have increased by 2.2% over the first
quarter of the year, taking them 9.8% higher over the year. Although
Melbourne home values have increased by a greater amount than
all other capital cities over the past year, it is the city’s slowest annual
rate of growth since May 2015. Annual value growth for Melbourne
recently peaked at 14.2% in September last year and although growth
has slowed it hasn’t decelerated as quickly as Sydney. Houses have
recorded a substantially higher rate of value growth over the year than
units, with house values rising 10.7% compared to a 2.5% increase in
unit values. Rents have increased by 2.1% for houses and by 1.3% for
units over the past year. As a result, rents are growing at their slowest
pace since April 2013. House values have increased faster than rents,
pushing yields lower over the year while unit yields are unchanged.
Gross rental yields for houses are recorded at 2.9% down from 3.2%
a year ago, while unit yields are recorded at 4.1%. Melbourne remains
the capital city with the lowest rental yields.
VICTORIA
Strongest performer of the capitals
Melbourne’s performance over time
Melbourne’s best performers
Houses Units
Median Price $610,000 $469,000
Quarterly change 2.5% –0.5%
12 months change 10.7% 2.5%
5 year total change 24.5% 9.0%
10 year total change 99.4% 66.1%
Rank Suburb
$
Affordable
1 FRANKSTON NORTH $299,500 140 11.3%
2 PLUMPTON $280,000 63 10.3%
3 MELTON SOUTH $252,500 227 9.8%
$$
Mid–range
1 CHELSEA $696,217 98 23.2%
2 MONTMORENCY $729,500 122 18.8%
3 CROYDON NORTH $690,000 113 16.0%
$$$
Prestige
1 BALWYN NORTH $1,850,000 436 27.6%
2 DEEPDENE $2,720,000 31 26.5%
3 BALWYN $2,150,000 247 22.9%
Rank Suburb
$
Affordable
1 KOO WEE RUP $272,000 13 15.7%
2 WYNDHAM VALE $280,000 25 10.9%
3 MELTON SOUTH $215,000 38 10.3%
$$
Mid–range
1 ROSANNA $597,500 50 29.0%
2 NUNAWADING $600,000 86 21.2%
3 WEST MELBOURNE $600,000 72 15.3%
$$$
Prestige
1 DEEPDENE $887,500 10 34.0%
2 BEAUMARIS $947,500 71 32.1%
3 BALWYN NORTH $1,118,000 45 27.8%
Rolling Median Price (12 months) Number sold (12 months) 12 month change in median price
Affordable = suburbs below 25th percentile Mid–range = suburbs between 25th and 75th percentile Prestige = suburbs above 75th percentile
Melbourne Median Price
Houses Units Dwellings
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
MAR-05SEP-06MAR-06SEP-07MAR-07SEP-07MAR-08SEP-09MAR-09SEP-10MAR-10SEP-11MAR-11SEP-12MAR-12SEP-13MAR-13SEP-14MAR-14SEP-15MAR-15
Based on CoreLogic monthly indices capital city data to March 31, 2016
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