Victoria breaks residential property price records
According to the Real Estate Institute of Victoria's (REIV) September quarter report, Victoria's residential median property prices have broken new records, with four consecutive quarters showing the highest-ever results.
The highest annual growth rate in over a decade was recorded with 22.8 percent for houses and 18.8 percent for units in the region over the 12 months.
Geelong, Newtown, and Lake Wendouree all broke the $1 million median house price barrier for the first time.
It means Melbourne now has 173 suburbs with at least a million-dollar median house price – a 13.8 per cent annual change and a 6 per cent boost for the September quarter.
Prior to the recent uncertainty caused by an increase in COVID cases across the country, the housing market was driven through the first six months of 2021.
According to Adam Docking, REIV’s newly elected president, the relatively low advertised housing stock helped fuel strong demand that resulted in price growth – even through lockdown.
“The September quarter also had the most number of days of complete COVID-19 lockdown, which had significant impact on the real estate market’s workings and, ultimately, resulted in less stock and fewer transactions,” Mr Docking explained.
He also predicted that this growth will be sustained until December 2021 when buyer and seller confidence in onsite inspections increase: “There’s a distinct correlation between a lack of activity in the market and prices, and as Victoria emerges from COVID-19 restrictions, we expect the market to stabilise. That said, a late start to the typically busy spring selling season means momentum should continue through to Christmas, and a return to in-person inspections is giving buyers and sellers more confidence to transact.”
Mr Docking went on to say that a series of significant events was making regional Victoria more appealing to Victorians.
Due to the pandemic, people are now more likely to consider buying in a regional area in order to save money and live a better lifestyle.
“The trend in tree or sea change investment and relocation continues with flexible and hybrid workplace arrangements and lockdowns attracting more people to a regional lifestyle,” Mr Docking opined.
Top growth suburbs in Melbourne
|
Location
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|
Median House Price |
Growth Rate (quarterly price rise) |
|
Keysborough Greater Dandenong |
$1.1m |
22% |
|
Beaumaris |
$2.27m |
16.6% |
|
Frankston South |
$1.25m |
15.7% |
|
Ferntree Gully |
$968,000 |
15.2% |
Most affordable suburbs in Melbourne
|
Location |
Median House Price |
|
Hoppers Crossing |
$589,000 |
|
Tarneit |
$592,500 |
|
Cranbourne |
$600,000
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