Melville Market Wrap - March 2023 | MGP Property Skip to main content

Now that we have all had some time to settle into 2023, what is happening in the Melville property market?

Stock levels have not increased, as most of you probably already know. They are at severely low levels, and rental vacancy rates are still at an all-time lows of only 0.7%. Affordability remains at the highest levels and this combination is holding up prices nicely and are the main reason why the Perth property market has been resilient so far this year, despite the latest interest rate rises.

If interest rates continue to rise without reprieve, there will eventually be an impact on Perth property prices. But just how many more rate rises will we have to endure?

Well, it looks that headline inflation is now trending downwards, and listening to the RBA’s latest statement, a pause in interest rate rises is possibly not far away. This is good news for the Perth market, so hopefully that is what will eventuate, as the RBA did also reiterate it will remain resolute in its focus on curbing inflation first and foremost.

In terms of price growth for the short term, I think it’s more likely that prices remain stable for the coming months. However, we need to see how things play out (as there lots of variables in the equation), before being able to make a call on if, or when, any price growth might occur.

A very similar story around our local suburbs, there does appear to be some growth in prices for the better property types, being properties that present well and are considered ‘move-in ready’, meaning they require little to no work post-purchase. Other properties like your reno jobs, knock downs or those on busy roads, aren’t performing as well and are keeping overall prices level. Hopefully we get an increase in the number of properties coming to market over the coming months, but don’t get too hopeful, any such changes  are likely to be slow-moving.