Strong quarter of growth for Melbourne home prices
23-Oct-2009
The REIV has released its September Quarter Property Update which shows the median price of a house in Melbourne reached $480,000, an increase of 6.7 per cent since the June quarter.
REIV CEO, Enzo Raimondo said that improved confidence in the Victorian economy combined with ongoing population increases has resulted in a new record quarterly median price.
“The recovery in the property market is widespread with record demand in the city’s most prestigious suburbs as well as its most affordable ones.
“Individual monthly results also show ongoing and sustained increases over the quarter which indicates demand will continue to push prices up through October, November and December.
“The improved confidence in the economy has revealed the underlying issue; a lack of supply, both for purchasers and renters. Unless there is a sustained increase in supply the REIV expects further pressure on prices.
“Surrey Hills has recorded the largest increase in its median this quarter, increasing by 24.6 per cent from $905,000 to $1,127,500. The median price in Surrey Hills fell below a million dollars due to the global financial crisis in 2008 but like many other suburbs it has now reached a new high.
“Pascoe Vale also recorded a very strong increase in demand, its median rose by 23.7 per cent from $485,000 to $600,000. Strong demand for traditional detached homes in similar middle ring suburbs such as Thornbury, Highett, Doncaster East, Nunawading and Bentleigh East was also recorded.
“This result comes as no surprise, in the auction market the REIV has recorded 23 weekends in a row with a clearance rate in excess of 80 per cent. This has been a very good period for vendors but is not sustainable.
“The median price for a unit or apartment has increased by 5.1 per cent in the quarter from $390,000 to $410,000 – the first time it has exceeded $400,000.
“Key regional city’s, Greater Geelong, the City of Ballarat and Greater Bendigo have all recorded increases over the last 12 months.
“The market has clearly recovered from very challenging times over the last 12 months however the challenge of ensuring adequate supply of homes for owner occupiers and renters will dominate the market in the next 12 months,” Mr Raimondo said.
Domain Property Advocates can assist you with buying, selling and renting your property. Call Warwick Brookes on 9853 5599 for more information.
