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Melbourne luxury market strengthens

The Melbourne property market saw strengthening demand in the higher end of the market during the first quarter of the year.

According to RP Data’s Victoria housing market specialist, Robert Larocca, the latest figures show that Melbourne recorded the largest rise of all the capital cities over the first quarter of 2014.

“The Melbourne property market has now moved from recovery into a growth phase,” he said.

“Over the past year the strongest growth in values has been seen in many of the city’s most expensive suburbs: Hawthorn East, Balwyn, Camberwell and Armadale.”

The March release of the RP Data-Rismark Home Value Index showed that house values in Melbourne rose by 2.3 per cent over the month and unit prices increased by 1.9 per cent.

Over the March quarter value growth outstripped units, rising 5.8 per cent to reach 2.5 per cent.

House values in Melbourne reached a new high of $555,000 in the March quarter, and units sat at $448,000.

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