Housing has a dual role: it offers shelter, living space and the amenities facilitating enjoyment of our leisure time. But for most Australians it is also the most important asset they will ever own. Fluctuations in its value can be critically important to their wealth position.

We have measured the typical rates of capital appreciation accruing to homeowners and rental investors across 108 segments of the Melbourne housing market. These rates of capital appreciation (growth) have been compared to those earned on a balanced portfolio of Australian shares, as gauged by movements in the Australian All Ordinaries Index.

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