Melbourne has been crowned the best performing residential property market in 2009.
According to figures released by RP Data, Melbourne’s median property prices increased 11.6 per cent in the first eight months of the year, compared to the average capital city increase of 7.9 per cent.
Wakelin Property advisory director Paul Nugent said he wasn’t surprised to see Australia’s second largest city record the leading performance.
“Many property commentators throughout 2008 suggested that Sydney apartments were the best place for investors. Towards the end of the year, many speculated the property market around Australia was about to experience serious price falls.”
“But these views ignored the robustness of house prices historically and overlooked Melbourne’s rapid population growth and broad economic base.”
Mr Nugent said while house values in Melbourne were still well below Sydney’s average, it meant that there was plenty of scope for increases in capital city’s residential property market over the next six to 12 months.
“The slight fall in building approvals today also underlines the persistent housing shortage in Melbourne and around the country. This lack of supply will continue to underpin capital growth and a strong rental market,” he said.