Melbourne properties stagnate
According to property experts Melbourne real estate prices are so overvalued that the market will seek to correct itself within a decade.
Not wishing to worry local homeowners economists are quick to point out that residential real estate prices are not expected to crash and burn as seen in many other countries around the world but are more likely to depreciate slowly over the next twelve months and then remain steady for the next several years until local salaries catch up and makes Melbourne real estate affordable once more.
During the last ten years house prices in Melbourne have sky rocketed by over 130 per cent and Melbourne is home to some of the least affordable property across the globe. Not too far in the distant past the average property in the city cost three and a half time the average yearly salary to it is nine times – measure this against New York where it is 6.1 and in the London property market the average is 7.2.