The cost of master-planned estates around West Melbourne, Victoria and other parts of the city might be less expensive in 2019, so the prospect of buying residential real estate could be more viable during this year.
Industry figures from CoreLogic show that the average home price in Victoria’s capital further declined by 0.4 per cent as of the third week of November. This price decline could also be seen through the willingness of property sellers to put listings at a lower price and close a transaction in the process. Economists also expect home prices in the city to drop by $33,350 in the following year.
Price Outlook for 2019
The lower median value of properties in Melbourne was half of the reason for the lower overall cost of homes in five capital cities. Sydney accounted for the other half, and these two cities are major market indicators due to 40 per cent of all houses nationwide being located there. CoreLogic’s figures indicate that the monthly decline in November could be much larger.
As a result, it will contribute to the constant downturn in both cities’ property markets. Prices in Melbourne have dropped by 5.4 per cent since January, while those in Sydney have fallen by almost 7 per cent.
Cheaper Apartments in Melbourne and Sydney
Aside from houses, the price of apartments in Melbourne and Sydney will also fall next year based on a survey of economists. The median cost of a residence in Melbourne can drop by around $38,000 by the end of 2019, down by 7.1 per cent. In Sydney, apartment prices might drop by 8.4 per cent or nearly $60,000.
If you plan to buy an apartment as an investment, it might not be a wise decision even if prices are expected to decline next year. Some experts said that the oversupply of units in capital cities had affected the median values for apartments. It’s better to consult a real estate advisor if you still plan to invest in flats to mitigate the risk of losing equity.
Observing the Market
Real estate investments are still a profitable investment, especially if you are aware of what drives the market. Even if there are no guaranteed ways to determine the best time for buying properties, there are some signs that you can take advantage of when planning an investment.
In 2019, some of the indicators for cheaper prices include auction clearance rates in Melbourne and Sydney, where transactions have stayed below 50 per cent recently. More people will also find it harder to apply for a housing loan as banks implement stricter lending standards, which in turn can cause some sellers to be more lenient in their asking prices.
In the end, even though property prices in Melbourne are expected to be cheaper in 2019, the monetary value of houses remain expensive for some buyers. You should take your time to research your options when choosing among different properties, such as master-planned communities where there are house and land packages.