As we approach 2024, potential homebuyers and investors are keenly observing the Melbourne property market. With its vibrant culture and expanding metropolis, Melbourne continues to attract attention. But the question remains: Is 2024 the right time to buy a house in Melbourne? Today, we’ll explore the property forecast for this coastal capital of Victoria, the top suburbs to watch out for in 2024 and some crucial factors you need to consider when buying a house or rental property in Melbourne. 

Recovery and Growth in Melbourne’s Property Market

After experiencing a decline, Melbourne’s property market has shown signs of recovery. House prices, which saw a drop of 7.9% from their peak in March 2022, have started to rebound, rising by 4.5% since January 2023. This recovery phase presents a potential opportunity for those looking to buy a property in Melbourne.

Moreover, economists and market analysts offer a cautiously optimistic outlook for Melbourne’s property market in 2024. Key predictions include:

  • Rise in House Prices

Despite a decline in median house prices over the past years, they remain above pre-pandemic levels. The median house price as of November 2023 was $934,000, indicating the market’s resilience and potential. Furthermore, major banks forecast a 3% to 5% increase in local house prices, driven by a continuous mismatch between population growth and new housing developments, leading to a limited housing supply. You may take advantage of this prediction by acquiring properties in the early months of 2024 and then selling or renting them out as property prices rise.

  • Strong Rental Market

An ultra-strong rental market in Melbourne, combined with limited supply, supports higher property values. This robust demand for rentals is a key factor contributing to the buoyancy of house prices. As such, 2024 might be a pivotal time for buying property in Melbourne. With a balanced apartment market and relatively stable property prices, it could be the opportune moment to make a move. That’s especially true for investment-grade properties, especially A-grade homes, in high demand in Melbourne. This demand creates a unique opportunity for property buyers and investors with a long-term financial plan and perspective. 

Suburb Picks for 2024: Best Suburbs to Buy a House in Melbourne

As we look towards 2024, certain suburbs in Melbourne stand out for their potential in the property market. Here’s a closer look at these areas, drawing insights from Savings.com.au’s article titled ‘Melbourne housing forecast: Suburbs to watch in 2024’: 

  • Westmeadows: Located about 16 kilometres northwest of Melbourne’s CBD, Westmeadows offers a blend of city accessibility and a ‘country living’ feel. It’s increasingly popular among families due to its safety, community vibe and proximity to amenities like shopping villages and restaurants. The area is witnessing a trend of home renovations, indicating a growing recognition of its value. With a median house price of $700,000 and units at $529,250, it presents an affordable option for many homebuyers.
  • Epping: Further north lies Epping, known for its natural beauty and slower pace of life, making it ideal for retirees and first-time homebuyers. Epping has been recognised as Melbourne’s most affordable and liveable suburb, offering a balance of affordability, investment potential and quality of life. 
  • Mornington Peninsula: For those looking beyond the immediate Melbourne area, the Mornington Peninsula offers picturesque settings combined with significant value. The region has seen price drops, providing opportunities to acquire properties at lower rates than their peak in 2021-22. This area is ideal for homebuyers looking for lifestyle properties or long-term investments.
  • Inner-City Suburbs: Fitzroy, Port Melbourne, Prahran, Richmond, St Kilda, and Windsor are also worth watching. These areas are known for their Victorian-style cottages and vibrant urban life. They offer strong rental demand and potential for growth, especially in the $1 million to $1.5 million price range. These suburbs are attractive for investors and homebuyers who value proximity to the city’s heart and its lifestyle offerings.

Each area offers unique advantages—family-friendly environments, investment potential, lifestyle choices, or growth opportunities. But, as always, when considering property investment, it’s crucial to align these benefits with your personal and financial goals, which we will discuss in the next section. This is where the expertise of a buyers agent can be invaluable. A buyers agent can provide tailored advice and insights specific to your situation, helping you navigate the property market to find options that best match your investment strategy and personal preferences. They can also assist in evaluating the potential of different areas, taking into account factors like market trends, community developments, and long-term growth prospects, ensuring your property decisions are well-informed and aligned with your objectives.

melbourne property market

Additional Considerations Before Buying a Property in 2024

While the 2024 property forecast for Melbourne presents promising opportunities, it’s crucial to consider several key factors before making a purchase. Here are essential aspects to keep in mind:

  1. Your Financial Readiness

Assess your financial readiness for a property investment. This includes having enough savings for a deposit and the ability to manage mortgage repayments after securing one of the best home loans in Melbourne. Consulting with financial advisors can provide clarity on your financial position and readiness for such a commitment.

  1. Your Budget Plan

Once you understand your financial standing, establish a budget for your potential house purchase or property investment and adhere to it. This discipline helps in avoiding overspending and ensures your financial stability is not compromised.

  1. Location Matters

As discussed above, the location of a property significantly influences its price and potential for appreciation. However, go beyond that by considering other factors like connectivity, infrastructure and community amenities. Each suburb or town has unique advantages, so choose one that aligns with your budget and lifestyle needs.

  1. Your Family’s Financial Future

Consider the long-term impact of your property investment in Melbourne on your family’s financial security. Purchasing life insurance can safeguard your family’s future, ensuring they can maintain the property in unforeseen circumstances.

  1. Property Maintenance Costs

Before buying a house in Melbourne, inspect it thoroughly and inquire about its condition, including any renovations or repairs needed. Property maintenance costs can significantly impact your budget, so it’s important to factor these into your decision.

Contact The Melbourne Mortgage Company Today

In summary, while the Melbourne market in 2024 offers attractive prospects, a comprehensive evaluation of your financial situation, the property’s location & market conditions is also essential. An experienced mortgage broker in Melbourne, like The Melbourne Mortgage Company (TMMC), can assist you in navigating these considerations, ensuring your property investment in 2024 is both a wise and well-informed decision. Moreover, our brokers at TMMC have a solid and extensive network of lenders; they can help you access the best home loans in Australia and find the mortgage solution that best suits your budget and needs. Reach out to us today to get started.

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