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CBA and Westpac forecasts 5% rise in Melbourne house prices for 2024!

Dear Fellow Property Investor,

Did you known that despite all the Scaremongering by the largely uneducated media, the Australian real estate market showed defiant resilience in 2023, with combined housing index for all capital cities growing by 8.3% for the year ending 2023!

How dare it!

Index value - National, dwellings

And yes, I must admit that 2023 was a test of resilience for housing values and financial stability more broadly. The performance of the housing market has been stress tested under the pressure of climbing interest rates, stretched affordability and the transition of many mortgage holders from low fixed rates to high variable-rate loans. Home values were not only resilient under these conditions but reached new record highs.

Annual change in home values

But there was definitely no sign of Armageddon or any type of ‘Blood Bath’ in sight!

In fact, many of Melbourne’s top eastern and bayside suburbs stubbornly defied the odds, and performed quite well, with many hitting double digit growth in 2023, according the latest ‘Best of the Best’ December 2023 Report from Core Logic;

Strongest 12 month growth

Now I don’t know about you, but I am happy with a 13.2% annual capital growth appreciation in Murrumbeena…

And guess what, to further negate these doomsdayers, not only did the Melbourne property market refused to crash in 2023, but rental yields surged at an unprecedented levels, in ‘Key Suburbs’, due to a chronic shortage of new stock - and over 1000 developers going bust over the last three years, as a result of the Dan Andrews imposed lockdowns (send him a thank you now for saving our lives from the nasty Bat virus when you get a chance!) …

Let me ask you something…

Do you have a game plan for 2024? 

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which in my opinion by the way has already bottomed out in November 2022), 

Or will you join them? 

So, what are you waiting for? 

Reserve your place and join me and 55 like-minded property investors for the first Real Estate Investing Fast Track Weekend for 2024!

Click HERE to reserve your seat now!

Don’t miss out, CLICK HERE to get up to date video education from Konrad Bobilak.

Dear Fellow Property Investor,

Australian property prices are continuing to rise, with capital cities now hurtling towards record-high prices for houses and units.

Domain’s September House Price Report found the housing market was near full recovery following the downturn in 2022.

Across the capitals, house prices are just $2,000 short and units $5,000 shy of hitting new record highs.

In Sydney, the median price of a house is now $1,578,099, in Melbourne it is $1,032,266 and in Brisbane it is $848,752.

For units, the median price in Sydney is now $781,024, in Melbourne it is $573,067 and in Brisbane it is $495,143.

“September’s quarter confirms all Australian capital cities are in recovery or at a price peak,” Domain chief of research and economics Dr Nicola Powell said.

“Sydney continues to lead the recovery, with Brisbane close by. By the end of the calendar year, house prices in Sydney and Brisbane are anticipated to recover fully from the 2022 downturn, reaching new records.”

Adelaide, Perth and Sydney led the charge for house price gains over the September quarter, while Adelaide, Perth and Melbourne saw the biggest unit price gains.

“Adelaide and Perth’s house prices are at an all-time high. For units, it’s Adelaide and Brisbane. These record-high numbers are driven by a series of factors: interstate migration, record levels of overseas migration, a tight rental market, and a chronic undersupply,” Powell said.

Despite the rise, the pace of growth, quarter on quarter, has eased by roughly a third.

Stretched affordability was slightly dampening the pace of growth, Powell said, with quarterly growth easing by roughly one-third.

“If mortgage rates weren’t as high as they currently are (5.98 per cent for a new owner-occupied home loan), price growth would be faster with the current housing undersupply,” Powell said.

Interested in learning more?

Reserve your place and join me and 55 like-minded property investors for the last Real Estate Investing Fast Track Weekend for 2023!

Click HERE to reserve your seat now!

Dear Fellow Property Investor,

A major bank is expecting house prices to run hot for the rest of the year - but renters already struggling with the cost of living will battle to keep a roof over their heads.

NAB has increased its near-term forecast for the capital cities to an eight percent rise in house prices, up from the previous forecast of 4.7 percent.

While the bank predicts price gains will ease in 2024 back to five percent, this still represents a whopping 13 percent growth in what property buyers need to fork over in just two years. 

Adelaide homes are expected to gain 8.6 percent in value for the rest of 2023 and then slow to a 6.2 percent gain next year.

PropTrack senior economist Eleanor Creagh told realestate.com.au that a lack of choice was driving up prices in the smaller capitals.

However, Ms Creagh said another smaller capital, Hobart, was not performing so strongly with prices increasing by 6.6 percent from the March 2022 peak.

'However, this comes after several years of outperformance as well as strong growth during the pandemic. Home prices in Hobart are still up 38.4 per cent since March 2020, ' Ms Creagh said.

NAB predicts Hobart prices will actually dip 3.3 per cent this year and be flat in 2024 - meaning there's at least some hope for first-home buyers looking to get their foot on the property ladder.

Sydney values are set to increase by 11.6 per cent in 2023 before slowing to five per cent in 2024.

Melbourne is only the capital predicted to see the price increases accelerate next year from 4.7 per cent to 5.5 per cent.

The housing shortage continues to spell bad news for renters with modelling released in August by Suburb trends forecasting many tenants could face increases of over $100 per week by next year.

In Dee Why, on Sydney’s northern beaches, rents are forecast to increase by a whopping more than $300 a week and $200-plus increases are also forecast for other popular areas in the city.

Queensland renters living in Surfers Paradise, Broadbeach and Isle of Capri can expect to paying an extra $170 a week by 2024.

Houses and units in the Victorian capital's suburbs of Port Melbourne, South Melbourne and Southbank are facing the steepest increases in that state, with average rents forecast to go up by $165!

In hundreds of other Aussie suburbs, rents are forecast to rise by less than $50 per week.

Interested in learning more?

Reserve your place and join me and 55 like-minded property investors for the last Real Estate Investing Fast Track Weekend for 2023!

Click HERE to reserve your seat now!

Book Real Estate Investing Fast-Track Weekend

Melbourne’s housing market is poised to outperform Sydney over the next two years, with prices accelerating by 12 percent in the year to June 2025, sparked by higher demand and more constrained supply, KPMG predicts.

Sydney house price growth is also expected to gain momentum, albeit at a slower 10.3 percent after inflation is factored in, during the same period.

Demand by foreign investors is also starting to pick up again and tipped to keep rising.

House price growth Melbourne

KPMG chief economist Brendan Rynne said increased demand and markedly lower supply would fuel those healthy gains by the end of 2025 financial year.

“Demand is likely to increase due to heavier migration, anticipated rate cuts moving into 2025 financial year and potentially relaxed lending conditions,” he said.

“High rental costs could also push renters to buy instead, along with the longer post-pandemic demand for more space as people continue to work from home.”

The Foreign Investment Review Board half-year figures of the 2022-23 financial year was at $4.3 billion, already more than half of the total investment achieved in the 2022 financial year.

“On the supply side, housing shortage is expected to persist due to the pullback in construction activity,” Dr Rynne said.

“The imbalance between population growth and housing supply will have a greater influence on prices than the dampening effect of mortgage stress and fixed mortgage reset,” he said.

“Melbourne is anticipated to outperform Sydney as supply in Melbourne is likely to be more constrained as seen by lower future dwelling completions,” Dr Rynne said.

Let me ask you something…

Do you have a game plan for 2023 and 2024? 

Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which in my opinion by the way has already bottomed out in November 2022), 

Or will you join them? 

So, what are you waiting for? 

Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!

Click HERE to reserve your seat now!

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