Arnold
CibbuanoSydney Vs Melbourne Real Estate Performance
July 24th 2006 00:07
In today’s city real estate death match, it’s the battle of the east coast megacities, Sydney versus Melbourne. Both cities are well established, popular places which are in a continual tug of war over which is the superior hub of Australian metropolitan culture. Melbourne is known as a cultural hub with a strong position in the arts, shopping and multicultural fields. Sydney is known for its temperate weather, beaches, beautiful harbour and casual lifestyle. How do they square off in the real estate market based on the past 12 months of real estate statistics?
Housing prices in Melbourne have taken a recent tumble but over the course of the 12 months of data have increased at a steady rate. Sydney prices have declined in value over the course of the year and suffered their greatest decline in the December to March period. Rental returns in Sydney have increased steadily over the year in Sydney whereas Melbourne has picked up in the final three months of the data period which demonstrates an increased demand for rentals in the city. Looking at the average price of a home compared to the average rental return, it appears that property in Melbourne offers a far more attractive option for the real estate investor looking to lease their property. Although the average house in Sydney costs an additional $156,500 compared to Melbourne, a landlord would only receive an additional $35 per week in rental return.
Unit values in Sydney have slipped in value at a similar rate to the housing market. Melbourne units have increased in value, especially in the final quarter of analysis. This suggests a disproportionate demand compared to availability of units in Melbourne whereas Sydney statistics suggests a flooded marketplace. Rental returns on unit properties have increased attractively for both cities. Sydney unit rentals are providing landlords with a much better return on their investment compared to Sydney housing rentals and Melbourne unit rentals.
| % Change | Mar Quarter Median | ||
|---|---|---|---|
| Dec 05 – Mar 06 | Mar 05 – Mar 06 | ||
| House Price | -1.0 | -3.6 | $516,000 |
| House Rent | 1.9 | 1.9 | $265 pw |
| Unit Price | -1.4 | -3.0 | $358,000 |
| Unit Rent | 0.0 | 3.4 | $300 pw |
| Vacancy Rate | -0.6 | -0.2 | 2.0 |
| % Change | Mar Quarter Median | ||
|---|---|---|---|
| Dec 05 – Mar 06 | Mar 05 – Mar 06 | ||
| House Price | -3.1 | 4.2 | $359,500 |
| House Rent | 0.0 | 4.5 | $230 pw |
| Unit Price | 0.8 | 5.3 | $307,500 |
| Unit Rent | 4.5 | 4.5 | $230 pw |
| Vacancy Rate | -0.3 | -0.6 | 1.8 |
Housing prices in Melbourne have taken a recent tumble but over the course of the 12 months of data have increased at a steady rate. Sydney prices have declined in value over the course of the year and suffered their greatest decline in the December to March period. Rental returns in Sydney have increased steadily over the year in Sydney whereas Melbourne has picked up in the final three months of the data period which demonstrates an increased demand for rentals in the city. Looking at the average price of a home compared to the average rental return, it appears that property in Melbourne offers a far more attractive option for the real estate investor looking to lease their property. Although the average house in Sydney costs an additional $156,500 compared to Melbourne, a landlord would only receive an additional $35 per week in rental return.
Unit values in Sydney have slipped in value at a similar rate to the housing market. Melbourne units have increased in value, especially in the final quarter of analysis. This suggests a disproportionate demand compared to availability of units in Melbourne whereas Sydney statistics suggests a flooded marketplace. Rental returns on unit properties have increased attractively for both cities. Sydney unit rentals are providing landlords with a much better return on their investment compared to Sydney housing rentals and Melbourne unit rentals.
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