Melbourne, 04 April 2016- Melbourne building approvals will continue to decline in 2016, as the city reaches the top of the development cycle according to the latest Australia Residential MarketView report from CBRE.
CBRE’s Victorian Residential Valuations Director, Greg Gerry, said the historically high building levels witnessed over the past few years means there is now a substantial supply pipeline moving towards completion.
“Increased supply, particularly in the inner city apartment market, is now having an impact on rents and vacancy rates which will be felt for at least the medium term,” Mr Gerry said.
“Apartments in Southbank, Docklands, St Kilda, South Yarra and North Melbourne are experiencing increasing vacancy rates.”
Capital growth in the house markets has reduced to a more sustainable level of growth, with established owner occupier suburbs seeing stability in pricing, while fringe areas are seeing softer levels of investor demand.
The report highlights that Melbourne house prices increased 2.7% in Q4 2015, up 13% over the past year. The median house price is currently $737,000. Median rent increased 2.3% to $455.
In the apartment market, prices increased 2.3% in Q4 2015, up 5.3% over last year. The median apartment price is currently $496,500. Median rent increased 1.3% to $405.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.