The changing hierarchy of housing values across Australia’s capital cities is attributable to both the speed of change in home values as well as the composition of housing as published in the article https://shorturl.at/TZ1vd by corelogic.
While Melbourne market has slipped, there is a lot of speculation and doubt as to whether Melbourne has slipped for good? I tend to believe otherwise. Sydney has been overpriced for long time. Brisbane, Adelaide and Perth has been going strong since covid while Melbourne has been relatively quiet. At some point all the peaked markets will take a pause as the buyers would return to Melbourne.
While Melbourne prises have gone backward, so has cost of living as per table below.
https://www.numbeo.com/cost-of-living/country_result.jsp?country=Australia
If we look at population in major metro cities, Melbourne has been second most populous city and typically house prices has followed the same trend.
| City | Population |
| Sydney | 4,627,345 |
| Melbourne | 4,246,375 |
| Brisbane | 2,189,878 |
| Perth | 1,896,548 |
| Adelaide | 1,225,235 |
While the trend in median values has been broken, one has to think how long for? I personally think as soon as the interest rates start coming down, Melbourne will once again gain strength and start going up. So the people who take position in Melbourne market before others will tend to gain most. I also strongly believe this growth won’t be across the board. You need to pick markets carefully.
Good luck! With your investment journey.
