Victoria Economic outlook (St George/Bank of Melb)

Latest detailed economic outlook for Victoria effective 24/08/16

 

Thanks for sharing this.

So what I take from this is that the Melb market is still strong, supply has increased, however we expect another interest rate drop and population growth is helping keep Melb property market buzzing along.

No surprises that there is an oversupply of apartments.





Outlook
Residential building has been elevated in Victoria for many years, allowing demand for new dwellings to be satisfied, so that the market is close to balanced currently. There remains, however, a solid pipeline of new projects, which will increase the supply of apartments in Victoria in coming years.

The rate of growth in rents has slowed, while the rental vacancy rate has edged higher. This is likely to intensify as more apartments become available to rent. The pace of growth in house prices has moderated in recent months and as more supply comes onto the market in Victoria, this trend will gain momentum.

On a positive note, however, Victoria’s population growth is buoyant and we expect official interest rates to fall further, which should support the housing market.
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