Victorian property values plummet $40 billion in six months



New Member
Hello all,

Not sure what the media is thinking about... 1 minute its a great time to buy the next minute its bad.

VICTORIAN property values have plummeted about $40 billion in the past six months.
Melbourne's median house price of $450,000 mid-2008 is now down to $427,500, according to estimates, the Herald Sun reports.

And house price expectations across Australia have sunk to an all-time low, a new report says.

Victoria's $800 billion residential property market has dropped 5 per cent - or $40 billion - overall since July, according to BIS Shrapnel calculations prepared for the Herald Sun.

The trend has opened the door for potential borrowers desperate for cheaper housing.

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New Member
Victoria posts rise in new home sales

Then a different response...

Victoria posted a jump in new home sales for the three months to November, the only state to boast a positive result for that period, according data from the Housing Industry Association.

From September to November, new home sales grew 1%, the HIA said, compared to a 0.5% increase for the state in November.

“While November’s gains were modest, the result shows that Victoria’s housing market is still holding up well compared to other states,” said acting Victorian executive director Robert Harding in a statement.

Victoria's stronger new home sales come amid a slump in national sales in November.

New home sales fell by 1.1% across the country in November, compared with a 3.1% increase in October, suggesting deep interest rate cuts and a government stimulus may take time to lure buyers back into the market.

Queensland reported the biggest dive.

"A lack of available credit and general economic uncertainty saw investors sitting on the sidelines in the second half of 2008," said HIA chief executive Chris Lamont, in a statement.

The Reserve Bank's interest rate retreat late last year, slashing the cash rate from 7.25% to 4.25% in the space of four months, is aimed at re-igniting demand in the economy, particularly in the housing sector.

The government announced in October a tripling of the first-time home buyers' grant, which came into effect last month, as part of a $10.4 billion stimulus plan.

Consumers, however, remain wary of the gloomy outlook for jobs and slowing growth, analysts say.

Nationwide homes sales edged down 0.4%, while apartments and duplex dropped 5.3%, a victim of the credit shortage.

The once red-hot Queensland housing market tumbled, with new homes sinking 10.1% in November, as the outlook for the resource-based economy withered. Queensland's fall obliterated increases seen in the four mainland states.

Western Australian new home sales gained nearly 8%, followed by New South Wales which increased 3.8%,

In South Australia new home sales nudged up 1.8%, while Victoria's eked out 0.9% growth for the month.

"The overall profile for new home sales remains weak, although there is early evidence of an improvement in Victoria and a stabilisation in Western Australia," said Mr Lamont.


New Member
Buying property is a good idea at the moment, given that you pay cash, the bubble has burst but you'll only make back your investment in a couple of years!