@boy

Now don't go jumping on my case and giving out to me for being a harbinger of doom and gloom - I'm just keeping those moving to Melbourne informed !!!

Headline article in todays age.
Melbourne house prices surge 25%
http://www.theage.com.au/news/nation...157560368.html

"A report to be released today reveals that Melbourne's median house price grew faster than in any other Australian city in 2007, jumping by almost $100,000 to $463,488 and closing in on the prices in Sydney and Perth."

"Renters were not spared either, with the Bureau of Statistics reporting that Melbourne rents jumped 5.4%, the biggest annual rise since 1991."

annemarie and john

Bloody 'ell! Hope we can afford to go there! Haven't really given anywhere else a thought. Flippin typical! Prices here going down. :curse:

ozzieeagle

A couple of interest rates rises are on the way, this could slow down or even decrease the price on new builds.

annemarie and john

That sounds a bit more hopeful. Anyway will worry about that when we get there. Thanks for that.

esperanza

It's good news for anyone who already owns a house there!

bcworld

Any ideas why the Melbourne market is growing so strongly?

I love the city, but by all accounts most new migrants and interstate movers can't seem to see beyond Brisbane & Perth these days.....so what's driving prices up in Mel?

esperanza

All the people trying to get away from the bloody immigrants!

fraser

Melbourne is the fastest growing city with immigrants now, probably due to those emigrating not wanting to feel like they're also retiring

bcworld

I totally understand where you're coming from there, believe me!

I think my previous statement was a bit over simplistic.....most immigrants from UK / Europe are heading to Brisbane & Perth.....most immigrants from Asia are going to Melbourne & Sydney.....I saw a report on this a while back. And as Asian immigration has now overtaken that from UK/Europe for the first time I guess these cities probably do have the most new arrivals.

@boy

Supply remains constrained and demand is still incredibly strong, bolstered by high net migration and a rising birth rate.

Additionally, the WA mining boom is certainly one of the factors.
Property investors are finding that the Western Australian property (and the other option being Sydney) is just out of reach and so what they've done is they've targeted Victoria and Melbourne in particular.

graz79

tis not just Melbourne. http://au.ibtimes.com/articles/20080...07-rp-data.htm

Reading the paper the other day the area we have just bought into (north east adelaide) is up 60% on last year

The only one that does not seem to be rising at the same rate is Perth (cos no-one can afford it anyway)

MartinLuther

Fantastic.

silver

And the other key factors of banks willing to lend to much money. We talked to one of the big four who was willing to lend us nearly 6x joint incomes, which is too much. I fear a rocky road ahead with interest rates on the rise and the big r word rearing its head in the US and europe. We have some of the highest prices vs. average earnings here as well which isn't great either.

Also rising house prices only really benefit those cashing out of the market, if your buying in or moving up it just means you end up with less disposable income.

Vim Fuego

A plague of locusts expected in Feb too ... cancel the flights dudes!

TraceyW

Ain't hindsight a great thing huh? Wish we'd headed to Melly instead...might've been a different ending.