According to the latest UDIA Victoria and RPM Urban IQ report, Melbourne’s residential property market has experienced a rebound in both demand and prices through the second half of 2019.

There have been several contributing factors, including a boost to borrowing capacity. Also contributing is that APRA is allowing the serviceability test for loan applicants to change from a flat 7.25% to a 2.5% buffer above the prevailing interest rate, encouraging buyers into the property market.

The subsequent escalation in prices, underpinned by the rebound in sentiment, has resulted in both the median house price and median unit price reach a new peak in the December quarter of 2019. However, land prices have continued to decline, as the recovery in the greenfield new home market generally lags that for established dwellings in the inner and middle ring suburbs.

The Urban IQ Property Market reports are produced for UDIA Victoria by RPM Real Estate Group.

The reports provide a quarterly update on the Victorian residential market including economic activity, prices, finance, building, sentiment and affordability metrics. 

Read the full Urban IQ report, December 2020 quarter, in English

Read the full Urban IQ report, December 2020 quarter, in Mandarin