Grattan Institute with University of Melbourne once analysed Australia’s residential dwelling index for the past half century. The view is that the property market will likely to adjust to plateau after every housing price boom.

As Melbourne’s property market has been rising for a number of years, concerns about the cooling of the market has been more than before, especially for the residents in the premium suburbs of Melbourne. Dr John Li looked into the house price history for Toorak between 2000 and 2016. Using a statistics that he proposed, the house price history is presented in the following graph.

According to the graph, it shows that the property price in Toorak has been fairly robust, even during the financial crisis in 2009.

The observation is that, Melbourne’s property market in 2018 will likely stay robust, especially for the premium suburbs. Note that there are lots of other factors involved when it comes to property market forecast and more information is required to produce a conclusion, this observation is still preliminary.