Melbourne property value growth to stagnate: CoreLogic-Moody


MELBOURNE’s booming housing market is tipped to stagnate over the next few years.

And an expected abundance of supply could already be impacting the growth of apartments.

The CoreLogic-Moody’s Analytics Australian Home Value Index Forecast Quarter Four report tips Melbourne houses to rise in value 6.2 per cent next year, on par with the national average.

But a decline of 1.8 per cent is forecast for 2018, and 3 per cent the following year.

Meanwhile, the city’s apartments are forecast to rise in value 3 per cent next year and 1.2 per cent in 2018.

This compares with the national average of 4 per cent growth in 2017 and 1.7 the next year.

“With Melbourne, it is possible that widespread expectations of the coming supply of apartments have dampened value growth, and so the increased supply may, in a sense, be already ‘priced in,’ said Moody’s Analytics economist Emily Dabbs.

“For this reason, the oncoming supply of apartments is likely to result in a period of flat prices, forecast to be little changed through to 2019.”


(Source: Scott Carbines. 

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