Melbourne Market Update September 2014

16 year Rate Record

On Tuesday 2nd September the Reserve Bank announced that interest rates will remain on hold at 2.5% over the next month. This is the 13th consecutive month where interest rates have remained on hold, the longest stretch since 1998.

Melbourne tops Aus Cities for Capital Growth

RP Data has reported that the capital city housing market has recorded its strongest capital gains for winter since 2007. Melbourne in particular performed well, with a market gain of 6.4% this quarter and 11.7% year on year.

More good news for First Home Buyers

Additional incentives for first home buyers were also unveiled with an increase in the land transfer duty discount. Eligible first home buyers in Victoria will now receive a 50% discount on this duty for the purchase of a principal place of residence up to the value of $600,000. This is in addition to the $10,000 First Home Owners Grant for newly constructed homes up to the value of $750,000.

Still the most liveable city

Melbourne has for the 4th consecutive year been awarded the prestigious first place ranking in the EIS Most Liveable Cities Survey. Taking into consideration indices such as education, access to health, safety and community, cultural and sporting events, transport and infrastructure, the coveted annual award aims to present a general comparison of quality of life achieved in cities across the world.

A bumper quarter for Melcorp clients

This combination of low and steady interest rates, good capital gains and the continuing international attraction on Melbourne as a place to live has resulted in strong demand for apartment product within the Southbank and the CBD area. Melcorp Property has successfully leased over 250 apartments within these two suburbs over the past quarter, and has seen a steady growth in buyer demand reflecting the healthy market conditions we are currently experiencing.