The Melbourne growth cycle is now well past its peak and it’s becoming harder to find growth markets. The only sub-market that is still experiencing strong sales activity and rising prices is the outer-ring sector, where first-home buyers are active.
Melbourne overall had its sales peak in 2015/2016, was gradually easing off in 2017 and continued to subside in 2018. Now only some of the affordable suburbs in the outer ring areas are upwardly-mobile.
Based on our latest survey of sales activity, the only municipalities with multiple growth suburbs are outer precincts such as the LGAs of Wyndham, Melton and Whittlesea.
Each of those LGAs has a small number of growth suburbs. A year ago those three LGAs each had seven or eight suburbs with strongly-growing sales activity; now only a handful remain.
But, as a result of that earlier uplift in buying activity, there has been extraordinary price growth.
Given all the patterns and trends we have observed in the Greater Melbourne area, we believe the best places to buy with prospects of growth are those outer-ring areas.
They are towards the end of their growth cycles but this is where astute investors can still find properties with affordable prices and potential for capital growth.
To discover the best places to buy in Melbourne at the moment, you need to read the new edition of Top 5 Melbourne Hotspots 2019.