Melbourne house price growth for 2011

Melbourne house prices could grow 3% or more during 2011. Research shows that the Melbourne real estate market had outperformed other markets consistently for the past few years. It had been supported by a state economy and labour market that has remained robust, even without the resource-sector boost delivered in other states.  

Rental vacancy was 1.4% in September 2010, well below the long-term average of 3%. Victoria’s economy is expected to grow at between 3 and 3.5% over the next few years. As a result, it is expected household incomes will retain enough capacity to support dwelling purchases and mortgages.  

Research predicts a 3.4% growth in house prices in 2011, just above inflation.

SOURCE: (AFR Pg. 44 - Friday 7th Jan)