Eternal Homes Projects’ Post

And I call it the salvation of millennials, the new Jerusalem on the Yarra, or colloquially, the city of Melbourne. Median rents in Melbourne have certainly increased a lot in the last few years, just like everywhere else in the country. However, when it comes to real estate, it is not always about the absolute, but often about relative outcomes. In 2020, Melbourne was the second most expensive city to rent a home in terms of dollar values, but by 2024, it has become one of the cheapest, if not the cheapest major metro city. To see this turnaround in absolute dollar values is certainly impressive. Where did this change come from? I suspect the supply response of new housing in Melbourne is a key factor. Policy and geography drivers behind this trend suggest it will have significant momentum going forward. I expect the Melburnian experience to start to look materially different from the rest of Australia in two years' time. Interestingly, surveys suggest that the majority of Australians believe supply has no impact on house prices, but I have found this to be one of the biggest investing fallacies in the real estate sector. #houseprices #australianrealestate #melbourne