If you're buying property in capital cities, Melbourne is probably the worst bet for the next 5 to 10 years. It's simple really, during the GFC they got a massive stimulus injection in the form of an incredibly generous first home vendors grant. If you look at the price action in Melb from 2007-2010 the effect of this is plainly obvious, prices in Melb have far outperformed other capitals in this time frame.
The grant brought forward a few years of consumption, coupled with a relatively high influx of people moving to the city permanently = large price gains. Supply ofcourse is slow to respond (but it has, look at the unsold stock, expecially apartments).
Melb poperty is headed for stagnation BEST CASE SCENARIO!! I'd sell if i was an investor with gains in that market.
