Melbourne markets face continued adjustments in 2012
The market corrections experienced in Victoria towards the end of 2011 look like they may be set to have a lingering impact over the next few months.
Research from Australia Property Monitors - a Fairfax company - shows that a mix of slowed economic turnover and reduced construction activity in certain areas means that the residential real estate market is likely to undergo continued price corrections.
In particular the State of the Market report identifies an abundance of domestic rental properties as one of the main contributing factors.
While a higher than average vacancy rate is not an ideal situation for property-heavy investors, it could prove to be a boon to savvy tenants looking to upgrade their place of residents as well as those looking to buy their own apartment or town house.
However, the biggest shift in value in the state has been experienced in detached housing, with a 4.3 per cent decrease in prices over the 12 months to October 31 - while apartments and units only dipped by 0.5 per cent in the same time.
The researchers also suggested that the resource-driven economy could help to improve market prospects in the long term as funds begin to flow in from newly-wealthy buyers.