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Melbourne outer ring property market outlook for 2016-2020 ?

Discussion in 'General Property Chat' started by Kangaroo, 27th Jan, 2016.

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  1. Kangaroo

    Kangaroo Well-Known Member

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    Hi, All,

    Everyone knows that Sydney has peaked and has past the top. I reckon it will be pretty flat for the next 4 years if the last cycle is an example. Sydney outer ring has it done and is slowing down as well.
    But how about Melbourne ? Melbounre outer ring looked like it kept growing well into 2010 from the graph in RE.COM ?

    Will it happen for this cycle as well?
    Should I buy Melbourne outer ring as investment ? Already have some in Brissbane. Should I keep doing in Brissy and forget about Melbourne ? But diversification may be ?

    I am from Sydney and have not much knowledge about Melbourne !
     
  2. MTR

    MTR Well-Known Member Premium Member

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    What do you consider outer ring?? km
     
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  3. Kangaroo

    Kangaroo Well-Known Member

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    Outer ring is a genaeral term. In Sydney, I would say anything 35KM away from CBD or around and those suburbs with price tag below 650K. Not sure what is the definition in Melb .
     
  4. MTR

    MTR Well-Known Member Premium Member

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    Sydney - if market sentiment is changing then I assume this will impact on all markets in Syd?? I just sold in outer ring because market has changed/falling. I would expect its not a particularly a good idea to jump in now, just my observation.

    Melb - there are some great pockets but the market has already moved significantly. Start researching areas where the median is lower end, I would look at east south corridor.

    I am sure many on the ground could suggest other areas to look at.

    MTR:)
     
  5. Kangaroo

    Kangaroo Well-Known Member

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    @MTR
    I agree. Sydney has absolutely done it. Even the most less desirable areas have price changed significantly and are showing softer pricing.
     
  6. Kangaroo

    Kangaroo Well-Known Member

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    The harder bit for me is to guess how much % it may grow during the next 4 years. If it only grows less than 15% in total in 4 years, I think it may NOT be be worth it. In Sydney's last cycle, I had an IP which grew around 10% from 2002 to 2003, then sat absolutely flat until 2010. BTW, it is an inner ring appartment.