Buyers spoilt for choice in the Victorian market
Victoria’s slow growth in 2024 has created new opportunities for investors as the market becomes more affordable.
Quarterly median price data from the Real Estate Institute of Victoria (REIV) showed that in the December 2024 quarter, dwelling prices across the state decreased between -0.3 and -2 per cent, offering an affordable entry point for buyers to secure a foothold on the property ladder.
REIV CEO, Kelly Ryan, said the Victorian property market remained resilient in 2024.
“The Victorian real estate market has experienced a unique series of challenges over the last few years, with increased taxation, rental market regulations, interest rates, and stubborn inflation placing mounting pressure on both home buyers and investors,” Ryan said.
“However, given the fundamentals that Melbourne and regional Victoria have retained, buyers are now well-positioned to join Victoria’s property market.”
Houses in outer Melbourne were the most affordable in the December quarter, reaching a median price of $758,500 compared to $1,114,000 in middle Melbourne and $1,600,000 in inner Melbourne, dropping by -1.2 per cent, -2.1 per cent and -1.4 per cent respectively.
Median house prices in regional Victoria and metropolitan Melbourne dropped by -0.9 per cent to $595,000 and by -2.1 per cent to $894,500.
According to Ryan, units and apartments are now an affordable way to enter the property ladder.
While house prices in the inner Melbourne suburbs were the highest, units and apartments were a bargain in the December quarter at a median price of $587,500 after dropping by 2 per cent from the previous September quarter.
Over the same period, the median price of units and apartments in outer Melbourne reached $597,500, while the median price in middle Melbourne was $688,500, the highest in the capital city dropping by 0.7 and 1.9 per cent, respectively.
Despite an overall quarterly drop, some suburbs recorded a price increase with the strongest growth for units and apartments across Melbourne’s inner and middle rings, with Sandringham increasing by 31.1 per cent to $830,000 and Brighton rising 28.4 per cent to $1,375,000.
Additionally, Carlton’s units and apartments increased by 27.9 per cent to $550,000, while Blackburn’s median prices rose by 25.7 per cent to $753,000 and Armadale’s by 23.2 per cent to $715,000.
While prices fell in the Victorian market in the December quarter, units and apartments in outer Melbourne and regional Victoria held strong against statewide trends, with 1.5 per cent and 1 per cent annual growth.
Regional centres such as Bendigo recorded a 21.4 per cent growth in Golden Square median unit and apartment prices, while North Bendigo saw an 18.5 per cent increase, and Kangaroo Flat went up by 9.7 per cent over the 12 months to December.
Ryan said the Victorian market is set to make a comeback in 2025.
“Melbourne’s historic place as the second-most expensive capital has shifted, and it is now the fourth-most affordable,” she said.
“Melbourne will likely catch up to its counterparts as the nationwide housing market moderates and becomes more aligned.”
“For those looking to buy a place, whether as a home or an investment, the Victorian market hasn’t been this attractive in some time,” Ryan said.