“Melbourne median slips below Perth and Adelaide”

Hi everyone, I’m Jason Mudford from OBrien Corporate with the nineth edition of the monthly property news for 2024.

According to CoreLogic you’re now officially paying more per average dwelling in Adelaide over Melbourne. The median dwelling value in Adelaide is circa $790,000 whereas in Melbourne it is $776,000. Adelaide over the last 12 months has had an increase of 24.4% in prices whereas Melbourne has dropped 1.0%. It is worth noting that the median dwelling value difference between Adelaide and Melbourne is skewed by the fact that Melbourne has 30% of home sales as units which brings down its median value, whereas Adelaide transacts higher prices houses 84% of the time over units

Nationally median house prices increased across Australia 0.5% for the month of August with Melbourne’s prices falling 0.2%. ?Perth was the strongest performing capital city with a 2.0% increase followed by Adelaide with a 1.4% increase. Both Adelaide and Perth are tracking strongly, mainly due to a 40% undersupply of listings based on its 5 year average, whereas Melbourne has a 25% oversupply of listings based on its 5 year average.? Perth too has overtaken Melbourne in its median dwelling value the first time since the resources boom in 2015, and again mainly due to its high proportion of house sells compared to unit sales.

Amongst the developed economies of the world, Australia has some of cheapest interest rates and aren’t in the same cycles of the market as other countries like New Zealand and the US who are likely to cut their interest rates this month. Our Reserve Bank Governor in August’s interest rate meeting, stated that no interest rates cuts would be passed for the remainder of 2024, meaning we’ll be waiting till 2025 for any relief.

Rental price growth has continued to slow, with our annual growth rate the slowest since May 2021. Rent yield dynamics are still strong for investors with Melbourne and Regional Victoria boosting strong yields of 3.7% and 4.3% respectively.

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That’s all for this month, remember the information provided is of a general nature, you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.

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