Melbourne’s return to real estate boom time

UNDERPERFORMING property markets, sharemarket instability, rising rents and falling interest rates are set to push Melbourne and Sydney into the lead of the property charge in 2009.

According to the Real Estate Institute of Australia, the Melbourne and Sydney property markets have been the worst performers in Australia over the past five years.

The median price of property in Melbourne had an average annual growth rate just over 4.5 per cent between 2003 and 2008. This compares with an annual growth rate of about 9.5 per cent between 1980 and 2003.

Sydney’s long-term growth rate stands at 9.12 per cent, but in the past five years its median has not been able to manage an annual growth rate above 1 per cent.

The Melbourne and Sydney property markets have under-performed their long-term average by a long way. In contrast, the Perth market has been the stand-out over the past five years due to the mining boom. The median value of property in Perth has grown by more than double the long-term average, with growth rates of about 16 per cent each year.

Read the full article here: http://business.theage.com.au/business/melbournes-return-to-real-estate-boom-time-20081219-72eq.html

To discuss how you can take advantage of the property market in boom times, contact Castran Gilbert to discuss your situation with one of their helpful agents.

Paul Castran