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Melbourne apartment price growth to slow

The price of apartments in Melbourne is set to grow at a more sluggish rate according to BIS Shrapnel.

The growth of apartment prices is due to slow down soon, with an oversupply of units available.

In its latest Australian Housing Report, BIS Shrapnel predicted that house prices in Melbourne would grow by six per cent over the next three years. At the same time, it expects property prices in Sydney, Brisbane and Perth to see double-digit growth.

It explained that, since 2010, Melbourne had seen building start on 20,000 apartments each year while demand only exists for 12,000.

Managing director of BIS Shrapnel Robert Mellor also noted that the supply of apartments in Melbourne's inner city areas, Docklands, Southbank and the Central Business District, is still set to increase this year.

Many apartments in Melbourne are targeted at property investors who buy them to let to tenants. However, these properties also attract so-called 'empty nesters' who are looking to downsize after their children have moved out of home.

Posted by Craig Francis

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