The June quarter median house price in Melbourne has increased by 4.9% since March, according to the Real Estate Institute of Victoria (REIV), with resilient property values recovering much of the ground they lost in the March quarter.
The REIV June quarter data shows that median prices have increased from $430,000 to $451,000.
"The moderate increase in the median price this quarter confirms that the Melbourne housing market is stable," said REIV CEO Enzo Raimondo.
"Each week around 1,500 people move to Melbourne, ensuring strong demand for property to buy and rent right across the city. This has contributed to the Melbourne residential property market performing better than other capital cities in these changing economic conditions."
Raimondo added that there is "no doubt" that the market is calmer and more sustainable than it was this time last year, which he says provides "more opportunities for buyers".
"The more sustainable position of the market is highlighted when comparing growth rates over the last year. In the June 2007 quarter, South Yarra was the highest growth suburb with an increase in the median [price] of 60%, compared to the June 2008 quarter with Glen Iris the highest growth suburb with an increase of 12%," he said.
"The median price for units and apartments has also continued to show less volatility than detached homes. The median price for a unit or apartment dropped less than detached homes in the March quarter, and in the June quarter remained steady with a median [price] of $370,000."
Raimondo said that over the longer term the two types of housing - units and apartments, and houses - have shown "near identical increases" in value, with the median price of a house increasing by 27% over five years, compared to 28.9% for units.
"Some volatility remains in the market and this year has seen a reduction in transactions compared to the same time last year," he said.
"However, if moderate economic growth continues and interest rates remain stable, then the local housing market will continue to perform well."
June 2008 Melbourne median prices
| Jun quarter 2008 | % change Mar 07 to Jun 08 | March quarter 2007 | % change Jun 07 to Jun 08 | June quarter 2007 | |
| Detached property | $451,000 | 4.9% | $430,000 | 10.8% | $407,000 |
| Units and apartments | $370,075 | 0.0% | $370,000 | 5.8% | $349,900 |
