The Real Estate Institute of Victoria (REIV) recently reported that Melbourne’s median house price remains stable.
While a slowdown in auction clearance rates and a weakening property market were observed, Victoria’s capital saw 0.6% and 13.6% hikes in the value of homes sold at auction and on the private market, respectively.
REIV President Robyn Waters added that Melbourne’s property market median house price tracked higher by 5% amid the “doom and gloom” commentary regarding the city’s property market.
“The property boom of 2017 could not be sustained and a levelling or correction of the market is a good thing in the context of housing affordability already being a pressing issue in Melbourne,” he added.
Delving into the data gathered in different regions, it was revealed that Regional Victoria generated a higher median house price increase of 9.1% compared to Melbourne. In Outer Melbourne, the median house price hiked 7.1% and the unit median rose 9.8%.
For reference, the industry group’s September quarterly data showed that the median house price in Melbourne remained unchanged at $834,000, while the unit median was higher by 0.2% to $640,000.
In the July-September quarter, the median house price in Regional Victoria fell 0.6% to $416,500. The unit price, on the other hand, dropped 4.1% to $292,500. These downward shifts follow a 4.0% gain in the median house price and 3.7% increase in the unit median in the March-June quarter.
The top performing suburbs within this quarter were found in the middle and outer ring. These include Mount Eliza, Essendon, Keysborough, Coburg, Greenvale and Narre Warren South. Two other suburbs in the Inner Melbourne, meanwhile, completed the top 20 growth list.
Commenting on the results, Waters said that buyers turned to Outer Melbourne and Regional Victoria due to affordability.
“Properties are being tightly held in Inner Melbourne as vendors wait out this period while the market in Outer Melbourne and Regional Victoria are stronger as buyers are inclined to snap up more affordable options,” he noted.
Tighter lending conditions significantly affected the market, as incentives for first homebuyers, which entice the purchase of affordable properties, were more likely to be found in Outer Melbourne or Regional Victoria.
