Melbourne becomes a million-dollar median city
Houses in metro Melbourne have surpassed a median value of $1 million for the first time, jumping by as much as 8.8 per cent from the previous quarter.
Following a substantial price boost over the last quarter to $1.0 million, Melbourne has become a million-dollar median city alongside Sydney where prices now sit at $1.3 million, according to REIV’s March quarter data.
But the Real Estate Institute of Victoria has asked everyone to “look beyond the hype” to see the full picture.
According to REIV, the strong market has spread around the state, as houses in regional Victoria surpass $500,000 for the first time with a 4.1 per cent increase from the December quarter, and 12.3 per cent annual growth.
While regional unit prices recorded a 5.9 per cent quarterly increase, they are now 19.1 per cent more valuable than they were 12 months ago.
“Many city dwellers are taking up residence in regional Victoria, as flexible working conditions are being embraced and encouraged by more and more organisations,” said Gil King, REIV CEO.
“Victorians are looking beyond the inner suburbs to find the lifestyle they want. These intra-state migrants will help to create jobs, boost local businesses, and revitalise regional communities,” Ms King noted.
But with Victoria’s property sector tipped to reach an estimated 35,000 transactions in the March quarter – the highest prior-corresponding-period result since 2015 – Ms King stressed the importance of considering if this performance is indeed sustainable.
“To answer this, we need to look at a few important external influences for the sector over the six to 12 months,” Ms King said.
These include the possible repercussion of the new Residential Tenancies Act on property owners; the continued closure of international borders and its impact on overseas investors; how credit levels could change if interest rates rise; as well as questions around the government’s role in providing incentives for first home buyers.
“They’re all critical factors people in the sector should be attuned to.
“But, in the meantime, we can take a moment to reflect on the fact that the property sector in Victoria is a significant economic contributor that’s enabling opportunity for more and more Victorians every day. According to the numbers,” Ms King concluded.
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