Login
ISCOVER
Financial pressures could be about to put a handbrake on the Victorian property market, according to one valuation firm.
Opteon Victoria's head of residential, Stuart Bridgman, said slowing household income growth, cost of living pressures and concerns over housing affordability could take their toll.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
"General demand in the market has been increasing from late 2013 up until now and we would expect this to continue, albeit at a slower rate, than previous years," he said.
"As we see stronger and weaker pockets form throughout Victoria, it is important for investors and those looking to sell to remember that any growth in value is dictated by supply and demand, and this will vary between suburbs and even precincts within suburbs."
Mr Bridgman said high-quality properties in prime locations would remain attractive, but did sound a warning about the Melbourne apartment market.
"We are finding that there is still strong demand for older, character-style housing at the pointy end of the market, and these types of properties are continuing to attract a premium from buyers," he said.
"However the same bullish sentiment doesn't necessarily apply for inner-city apartments due to some concerns with increasing oversupply for Melbourne's CBD and nearby locations, over the next few years.
"While many high-rise apartments are being acquired by overseas purchasers and SMSF investors, we could see these numbers drop-off as the economy weakens and proposed changes to overseas investment are implemented," he added.
[Related: Melbourne grows 1.9pc in September quarter]
