Onthehouse Market Update, page-8

Melbourne

• House price value growth in Melbourne was 8.85% in the
last 12 months, which is second only to Sydney. Unit values
also increased in this market during the same time period,
by 4.25%.

• Affordability in Melbourne is the second worst in Australia.
The median household making home loan repayments on
the median home is left with only $913 after tax per week
to spend on necessities. Making repayments on the median
unit leaves the median household with $1,119.

• Calculations indicate that the surplus stock situation in this
market has increased. It is estimated that this market is
now oversupplied by around 7,000 dwellings.

• The trend in both sales and growth indicates that we have
passed the peak of this relatively small, sharp period of
growth in this market. This market is expected to slow as
we approach the Christmas period.

• Rental yields in Melbourne are the lowest in Australia.
Currently, rental yields are 3.57% and 4.45% for houses and
units respectively. These yields will be impacting investor
activity in this market.

• The average predicted growth outcome per year over the
next 5 years is 2% for houses and 3% for units.