Melbourne house prices in 2013 - zero to 3% forecast range: APM

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.