Melbourne house price slump ends Victorian exodus
In the years prior to the pandemic, Victoria came far closer to living up to the slogan which one emblazoned its number plates ‘The Place To Be’, than it does today. In 2018-19, it had the fastest growing rate of Gross State Product per capita of any of the major states, running at a rate The post Melbourne house price slump ends Victorian exodus appeared first on MacroBusiness .
Prior to the pandemic, Victoria was one of the fastest-growing regions in terms of Gross State Product per capita, ahead of other major states like New South Wales. During this time, Victoria experienced positive domestic migration, with fewer residents leaving the state compared to New South Wales, South Australia, and Western Australia, who all saw outflows predominantly to Queensland and Victoria.
The state's level of debt as a proportion of Gross State Product was within a sustainable range, sitting in the mid-single digits.
Today, Victoria has the highest level of state debt to GSP of any state, and the housing market has collapsed with a decrease in property transactions. The fiscal future of the state now appears uncertain. However, there is some positive news for the state in terms of housing costs, as they are comparatively more favorable than other parts of the country.
For instance, the median house rent in Melbourne stands at $668 per week, which is cheaper than the $777 per week median in the capital city and significantly lower than the $885 per week in Sydney. Additionally, Melbourne's median house price is $915,100, which is the cheapest among mainland state capitals.
The exodus of residents from Victoria to other parts of the country has finally come to an end after 23 quarters of continuous outflows. In the March quarter, Victoria added 504 residents through net interstate migration, and a total of 82 residents on a rolling annual basis. Although there are other advantages in other states, and Melbourne has its drawbacks, housing costs have now become the main factor in net terms, making Melbourne the unlikely champion for the nation's housing cost crown.
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