Melbourne Property is 21% Undervalued - Here's Why | Stuart Wemyss

Melbourne property investors have endured almost a decade of disappointing growth, and the usual explanation is taxes, debt and government policy.

But what if the biggest cause was the extraordinary 20-year boom that came before it?

By the end of this episode, you'll understand exactly why Melbourne has underperformed for the best part of a decade, why the usual suspects, land tax, state debt, poor sentiment, probably aren't the real culprits, and why the length of Melbourne's flat patch might actually be the strongest signal yet that a powerful new growth cycle is coming.

Stuart Wemyss, my guest today, has crunched forty-five years of data across every capital city in Australia, and what he's found flips the whole "Victoria is broken" narrative on its head.

In this episode, we discuss Melbourne's property market and what its long period of weak growth could mean for investors.

We examine why Melbourne's recent performance may be the aftermath of an unusually strong 20-year boom, rather than the result of one policy or economic factor.

Stuart explains how he uses 45 years of capital city data to compare current prices with long-term trends.

We explore why Melbourne houses and apartments appear below those trends, and what might prompt the market's next growth phase.

The conversation also considers rental yields, negative gearing changes and the choices investors can make when planning for the long term.

Takeaways

• A long boom helps explain Melbourne's recent stagnation

• Tax changes can shape sentiment without explaining everything