Melbourne’s house median increased 5.4% to $590,000 over the last quarter according to the REIV and Melbourne units jumped by 3.2% to $474,500 over the quarter.
Interestingly Victoria’s regional housing market grew stronger over the past year than Melbourne’s suburban market. Over the past 12 months the regional increase in median house price was 8.5%,, while in Melbourne the median house price increased by 5.7% over the year according to the REIV. The unit median increased by just 1% over the year.
“The result confirms that, following a few years of turbulent conditions in the residential market, the last 12 months have recorded moderate and sustainable price growth,” REIV chief executive Enzo Raimondo says.
“This result is reflective of a market that is now stable, following the GFC and corrective action taken in response.
“Over the medium term, local factors will continue to have an impact, in particular the health of the Victorian economy, population growth and the level of construction and supply,” he says.
The current Melbourne median is slightly below the peak of $601,500 reached in the December quarter 2010 and with the market downturn, sales volume in Melbourne was about 22% down on the same period last year.
Of the main regional centres, strong demand was recorded in Bendigo, with a 4.5% increase in the quarter to $287,500. This was followed by Ballarat, with a 1.3% increase to $288,500.
Of course just because there has been a short term change in trend doesn’t make regional Victoria a better place to invest. I’d always put my money in capital cities as I explain in this blog
As always, some areas always outperform the averages. The report pinpointed some suburbs that recorded very healthy increases including Prahran, Melton, Frankston South, Mount Martha, Sunbury and Berwick.
The strongest demand in the unit market was in Richmond, East Melbourne and Malvern East.
The median price of a house in regional Victoria increased by 1.6% to $325,000 in the June quarter, up from $320,000 in the March quarter.