Mornington Peninsula towns see gangbuster growth on strong demand: REIV

Rye took home the price growth bacon, seeing a staggering annual increase of 48 per cent and with the median cost of a home in the seaside suburb currently standing at $1,195,000.

Meanwhile, Mount Martha saw a 34 per cent annual increase, with the median price of a house in the bayside town reaching $1,870,000. Its upcoast neighbour Rosebud was not far behind, growing by 32 per cent year-on-year to reach an average house price of $851,121. 

According to REIV president Adam Docking, the report proves that Melburnians are still on the move and looking to settle in lifestyle locations. 

“The data reflects the theme of [an] ongoing migration to the regions, as we see more Melburnians seeking out a scenery change in coastal towns and regional cities”. 

REIV also reported that the five-year growth streak continues in regional Victoria, with a 26.7 per cent annual increase, with the median house price now at  $595,000. In the last quarter, the sector also saw a 3.8 per cent increase, bringing the average price of regional houses to $625,000. 

Meanwhile, regional units also continued to record gains, with the sector posting a 16.5 per cent annual increase with a median price of $410,000. On a quarterly basis, median prices for units and apartments rose by 1.9 per cent to an average of $418,500.

Metropolitan Melbourne  price growth ‘stabilises’ 

While regional Victoria continued to outstrip growth in metropolitan Melbourne, REIV noted that dynamics of price growth are shifting and moving back into a more balanced state. 

Data showed that metropolitan Melbourne saw a 0.3 per cent quarterly decline in house prices to a median price of $1,121,500. Meanwhile, units and apartments saw a quarter-on-quarter decline of 0.9 per cent to an average of $684,000. 

In the last 12 months, the annual median house price across metropolitan Melbourne rose 18 per cent from $932,500 to $1.1 million. 

Several suburbs within the metro area also reported strong annual growth. For houses, the median house price in Werribee grew 18.7 per cent to $620,000, while Sunbury saw a 16.8 per cent surge to $652,500.  

For the unit sector, several areas saw solid price growth while recording median prices under the $600,000 mark. This includes units in inner-city suburbs such as Docklands and the Melbourne central business district, with average prices of $555,000 and $580,000, respectively. 

Commenting on the figures, Mr Docking said: “As expected the report shows the metropolitan housing market is stabilising but the fundamentals remain strong.” 

He further noted: “The Victorian residential market has recorded strong growth for over two years and as supply catches up with demand, we can expect to see a steadier period.”

However, the head of the state’s peak real estate body underlined that while Melbourne’s property market is entering a period of stabilisation, both state and federal governments need to re-evaluate some of the fundamentals, including property taxes that form a significant part of the cost to acquire and maintain a property.