Melbourne's median house price increased by a "relatively subdued" 0.5% for the first 10 months of 2012, according to Australian Property Monitors.
"Melbourne’s housing market saw increased activity from first-home buyers and a lift in buyer activity in the prestige market," says APM.
"Investors and first home buyer are set to remain relatively inactive as a consequence of Australia’s least competitive capital city rental market."
APM notes a "looming oversupply" of apartment stock coming on line and as a consequence forecasts high vacancy rates, stagnant rental growth and falling unit prices in the Victorian capital.
"Melbourne house prices should increase by up to 3% in 2013."
This is below expectations for many other capital cities.Click to enlarge
Click to enlarge