The results are in for 2016 capital cities and, according to CoreLogic, second only to Sydney’s house value rise of 15.5 per cent, year-on-year, Melbourne home values also out-performed, growing 13.7 per cent.

CoreLogic head of research Tim Lawless said “a growing divergence between the broad housing market types” was particularly evident in Melbourne. “Over the past twelve months we have seen capital city house values rise by 11.6 per cent, while unit values have increased by roughly half the pace at 5.9 per cent,” he said.

Researchers predict the two-speed market between Melbourne houses and units will continue in 2017. Mr Lawless said strong population growth and economic activity had driven growth in Melbourne.

Senior research analyst Cameron Kusher added demand for housing and a shortage of stock was adding to the speed of rising house values.

“And unless something changes dramatically come the end of this month or early February we expect that growth is going to continue,” he said.

Melbourne’s median dwelling price sits at $641,200.

These stats are, of course, city-wide trends. Within Melbourne there are over 400 suburbs and precincts which can all have individual influences – and it is only a one year snapshot.

Overall Melbourne property values, houses, and units, have been on a rising trend for over 4 years and those who wait for a pause miss out on the immediate gains. As well as rising prices, we have generally had a sellers’ market for those 4 years, the except in some apartments blocks in the city centre, and C -grade housing stock.

Strategic Buyers Agents has never bought Off-The-Plan apartments for clients as they often disappoint, in the result, the value, or both. We would only buy a C grade property as part of development project.

An example of how Off-The-Plan buyers often lose was illustrated once again when, in December I negotiated the purchase of a brand new one bedroom apartment for my young clients, at $356,800. The building inspector was in high praise of its build quality and it had never been occupied. This was $14,200 lower that the original buyer paid, and a saving much greater than my Success Fee.

Strategic started the 2017 property year strongly in week one with a couple of buyers to satisfy, and three Vendor Advocacy sales being organised.

It looks like being another busy year, with challenge, variety and the satisfaction of being able to fulfil homebuyers and investors wishes in their buying, and also help vendors get the maximum possible result from their sales, via our Vendor Advocacy Service.

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