Melbourne Property Market Poised for a Comeback

Australia’s property market has seen mixed performances in recent years, with some cities booming while others lag behind. Recent trends suggest Melbourne, which has struggled compared to Brisbane, Adelaide and Perth, could be set for a strong recovery by 2030 as investors take advantage of lower prices.

Over the past few years, Melbourne and Hobart have been the weakest performers, with home values still 5–7% below their 2022 peaks. Meanwhile, cities like Brisbane, Adelaide and Perth have gained nearly $250,000 in value. Currently, Sydney remains the most expensive market, with a median price of $1.09 million, followed by Brisbane at $870,000 and Melbourne at $774,000.

Melbourne's slowdown has been attributed to several factors, including strict policies on landlords, rising taxes and the state’s prolonged Covid-19 lockdowns impacting economic confidence. However, with investors now identifying the city’s undervalued market, momentum appears to be shifting, mirroring the rapid growth seen in Perth and Brisbane in previous years.

Australia’s property market tends to move in cycles, and Melbourne’s recent underperformance may not persist much longer. If historical trends hold, its growth could outpace other cities in the coming years, making it an attractive choice for buyers looking to invest before prices climb once again.

Source: The Australian, Simply Wealth Group, RT Edgar