Herald Sun

Switch in power may lift property

by Nathan Mawby

A change of government in Victoria’s looming state election is being touted as a “catalyst” to save Melbourne’s struggling housing market – and turbocharge prices in some areas.

The property pundits behind Hotspotting have tipped Melbourne council areas Darebin, Moonee Valley, Frankston, Brimbank and Whittlesea as the best poised to cope with house price pain being caused by the Albanese government’s May budget attack on investors.

But they could be set to surge if there is a change of government at the November poll.

Earlier this week the REA Group pegged Melbourne’s median house values as lower than at the start of spring in 2021, in the latest grim milestone for the city’s housing wealth.

Hotspotting managing director Tim Graham and founder Terry Ryder have identified rising transaction volumes in the five council areas that, with a change in sentiment towards the state’s housing market, they believe could see property prices in those areas outperform.

They are seeing similar t d i i l il trends in regional councils including Warrnambool, Ballarat, the Wodonga and Echuca areas, and Colac Otway Shire.

Mr Ryder said Melbourne was the nation’s second biggest capital by population and should be its second most expensive, particularly given many of the city’s residents earned higher wages than those in Brisbane and Adelaide where home values boomed in recent years.

Noting the city’s sentiment towards property was among the worst in the country, he said the ranking as the nation’s sixth most expensive capital was largely due to the state government.

“So a change of government in the November election could be a catalyst,” Mr Ryder said.

“There’s massive infrastructure spending going on, but poor sentiment generated largely by the Victorian government has been largely responsible for the situation.”