The latest Victorian Valuer General report confirms what all Victorians knew…. we’ve had an amazing property boom over the last few years.
Victorian properties have been collectively valued at a record $1.26 trillion by the Valuer General.
This is up 16.9per cent from $1.06 trillion in 2008 and $869.5 billion in 2006.
Every two years the Valuer general revalues the states 2.6 million residential, commercial industrial and rural properties for the purpose of imposing council taxes.
Residential property prices have risen at a record rate over the last 18 months pushed higher by confidence in the state’s economy and a growing population. But this has now slowed down due to decreasing affordability on the back of 6 interest arte rises and higher prices.
Don’t be mistaken…this is a good thing. The rise in prices in many parts of Melbourne was unsustainable and if it continued, the bubble that would have been created would have had to burst.
The REIV has released the September quarter median prices, which reveal that the median price of a house in Melbourne has increased by 0.9 per cent to $565,000 from a revised $560,000 in the June quarter.
The market will now grow more slowly for a few years, and as always some areas will outperform others. It is likely that first home buyers and the lower priced areas will be more interest rate sensitive and languish while the inner and middle ring suburbs will outperform.
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