Official Newsletter of Hamton Property Group

Market Update by Steve Buxton


Despite attempts by some segments of the media to talk the market down in recent months, the Melbourne property market is continuing to demonstrate ongoing strength with demand outstripping supply in many areas.

In fact, a recent Property Update from the Real Estate Institute of Victoria recorded the largest quarterly increase in Melbourne’s median house price in the history of this report.

Of particular interest to many of our clients, particularly where forthcoming projects are concerned, was the annual increase in median house prices in Coburg of 46%, whilst units and apartments increased by 42% in Malvern and by 52% in Sandringham.

All of this data reinforces what we have experienced first hand in recent months, with sales of the ground breaking Society apartment building in South Yarra exceeding all expectations despite two interest rate rises during the initial launch period.

Residential vacancy rates are still at very low levels, with increased demand pushing rental returns upward across Melbourne. Inner Melbourne seems to be leading the way in this area with an increase of over 13% last year.

The outlook for property buyers continues to look positive, with:

  • Ongoing rental increases driven by ongoing low vacancy rates
  • A projected shortfall of new housing to meet the demand from incoming interstate and international migration;
  • Property values continuing to rise, (albeit at more sustainable rates), in the face of the ongoing imbalance between buyer demand and supply of available stock.

The only down side to the current market is the difficulty many tenants and younger buyers are experiencing in finding affordable housing. It is this need, particularly for affordable housing solutions in the 5 to 10 kilometre circle around the CBD, that we are looking to address with our exciting new project in Coburg – stay tuned for further details!