Property prices in Melbourne are showing no sign of slowing down with median house prices jumping by 23.4% in 2007 to $485,000 according to data released by the REIV.
In 2007, Melbourne prices grew faster than in any other capital city in Australia.
The strongest performance came from the expensive inner to middle suburbs. As for the outer suburbs the lower level of affordability and rising interest rates kept prices flatter. The strong run is not surprising as Melbourne’s rising population has been one of the key drivers for the buoyant housing market. The city of Melbourne had the largest population growth in Australia in 2007.
As the demand for real estate is still high, indications are that 2008 will be another strong year for housing, but the price rises are not sustainable in the medium to long term. We are fast becoming one of the most unaffordable cities in the world.
The latest data released by the real estate Institute of Victoria indicate that generally, prices in the Manningham area performed better than the overall Melbourne average. The breakdown for each suburb is shown in the table below.
