What to expect for the 2019 Melbourne property market.
Melbourne’s housing market looks set for another year of modest price falls amid weak sentiment, curbs on borrowing money and a wave of new supply.
But experts hope the city’s surging population will put a floor under the declines as more new residents look for family homes.
The city’s residential market has been coming off the boil after five years of soaring prices, with a regulatory crackdown on bank loans and scrutiny of lending standards from the financial services royal commission.
A boom in new detached housing is also underway and likely to peak this year before falling slightly.
Victoria’s population growth, running at 2.2 per cent a year on official figures, is supporting a high level of demand for new homes.
Next year a number of legal reforms will also be in focus.
Reforms to tenancy law passed the Victorian parliament this year and will now be subject to a period of consultation before coming into effect in 2020. The changes are set to introduce basic standards, limit rent rises to once a year and support pet ownership.
Separate changes to owners corporation laws will also give comfort to residents.
At a federal level, a Labor victory in next year’s election could see restrictions on negative gearing and capital gains tax breaks.
The uncertainty over these policies is affecting the housing market now.