Melbourne has negotiated the difficult post-boom correction phase and is now clearly in recovery mode.
The turn-around in overall fortunes in the Melbourne metropolitan area since the middle of 2019 has been characterised by dramatic improvement in auction clearance rates and recent evidence of a revival in price growth.
Most Melbourne suburbs still have median house prices below the levels of 12 months ago, but in the most recent quarter their medians have risen.
A standout feature has been the resilience of suburban unit markets in 2019: many Melbourne suburbs have median house prices lower than a year earlier but median apartment prices remain higher.
The official statistics show that first-home buyers are more active now than at any time in the past eight years - and many young adults opt for the apartment lifestyle, rather than a house on land - and not just because it’s cheaper.
So demand for affordable apartments stayed strong in 2019 at a time when demand for houses was weak.
The price differential - in many Melbourne suburbs the median price for apartments is roughly half that for houses - has been a factor.
In making our selections for this edition of Top 5 Melbourne Hotspots, we have highlighted areas that have shown resilience during the downturn, have offerings that are affordable to mainstream buyers and have solid credentials for long-term, sustainable price growth.
Overall, it’s a good time to be considering real estate investment in Melbourne and we expect 2020 to be a vibrant year for markets in the Victorian capital.
To discover the best places to buy in Melbourne at the moment, you need to read the new edition of Top 5 Melbourne Hotspots 2020.
Melbourne was Hotspot of the Week on December 3rd, 2019