Melbourne Median Property Prices Set to Nearly Double by 2030
Melbourne's inner suburb house prices are predicted to almost double by the end of the decade. As the city's typical house prices have risen an average of 7.9% per year over the past 40 years, prices are predicted to reach $1.5 million in 2030 for houses and $985,000 for units, according to Corelogic data. Population growth, infrastructure investment and policy changes around access to credit is driving the trend.
Strike gold in the suburbs
Economist Dr Diaswati Mardiasmo said by 2030 Toorak is projected to have the highest median house price at $7.926m, followed closely by Brighton at $7.051m. Even suburbs as far-east as Wantirna are projected to see significant growth, with an average future median house price of $2.881m.
First price rises in 12-months
Australian dwelling prices rose 0.6% in March, the first nationwide increase since April 2022 and comes after declines moderated to just 0.1% in February. In some cases a 40-50% rise in property prices is predicted before the turn of the decade, the average annual growth rate for well-located capital city properties is about 7%, which would mean, in general, these properties should double in value every 7-10 years.
Strategies for investing in the Melbourne property market
Demographers have closely monitored downturns and resulting market recoveries, over the last four decades, in forecasting average growth rates for the future. As more lucrative opportunities begin to arise, we’re fast-approaching a beneficial time for investors.
If you’re in the market for apartments, it pays to seek properties with the X-factor. Features like period charm, architectural character or impressive amenities make these developments more appealing to potential tenants. While optimally-located, Melbourne inner-city apartments offer varying degrees of space, ventilation and natural light; key factors that affect a property’s appeal to potential renters. However, inner and middle-ring suburbs are growing in demand – South Yarra, Armadale, Malvern, Brighton and Bentleigh.