What can we expect for the property market in Melbourne in 2024? Will houses be cheaper in
2024 in Melbourne? Will they rise? If these questions have been playing on your mind, you’re
not alone.
As a first-time homebuyer in Melbourne, understanding the property market’s trajectory is
crucial, especially with recent developments indicating a mix of challenges and opportunities.
Recent insights from the PropTrack Property Market Outlook Report 1 provide a nuanced
outlook. Melbourne’s house prices are projected to rise by up to $37,000 in 2024, but it comes
with a unique set of circumstances that distinguish it from other Australian capitals.
One significant factor impacting Melbourne’s property landscape is the landlord exodus
propelled by increasing state government taxes. This exodus has resulted in more homes hitting
the market than in any other city over the past year, raising questions about the potential impact
on pricing trends.
Are house prices dropping in Melbourne?
The PropTrack report forecasts a 1-4% growth for Melbourne’s property market in the next 12
months, potentially pushing the median house price beyond $950,000. While this growth is
expected to be less than in Sydney, Brisbane, Adelaide, and Perth, it marks a significant
improvement compared to the unexpected 1.9% growth experienced in 2023.
Cameron Kusher, the economic research director at PropTrack, attributes this growth to various
factors, including rising interest rates, increased costs of building new homes, and Victoria’s
substantial contribution to national migration.
However, will house prices follow the increase of 2023 in Melbourne, or will houses be cheaper
in 2024?
The Melbourne property market’s unique circumstances present opportunities for first-time
buyers. Record-low rental vacancy rates may encourage some to explore homeownership,
taking advantage of uncertain tenancies.
The accelerated sell-off of rental homes by landlords looking to exit the market provides an
increased supply but also raises questions about the future of Melbourne’s property landscape.
As the Real Estate Buyers Agents Association of Australia Victorian representative, Luke
Assigal, notes, the fate of first-home buyers in 2024 may hinge on the Australian Prudential
Regulation Authority’s decisions and potential interest rate cuts.
These factors could influence demand and reshape the property hotspots, with Melbourne’s west and outer northern suburbs
emerging as potential areas of growth.
In summary, Melbourne’s property market in 2024 presents a dynamic landscape for first-time
buyers, addressing key questions about potential drops, increases, and affordability.
Navigating this market requires a keen understanding of the evolving factors influencing house
prices and the strategic possibilities that may arise.
Stay tuned for more updates as the new year unfolds, bringing with it a mix of challenges and
opportunities for Melbourne’s property market.
We are interested to see where 2024 takes us….
*Sources used news.com.au and PropTrack Property Market Outlook: December 2023 – PropTrack
Are you looking at purchasing a property in 2024 or to discuss your options? Get in touch with
our trusted team today!
