Melbourne’s median home prices have grown again in the March quarter to a new peak of $652,500, reflecting an annual growth of 13.7 per cent. REIV CEO Enzo Raimondo said that while Melbourne’s house and unit prices continued to grow, the increase this quarter was more moderate than in the past two quarters.
“We saw a strong second half of 2013, so this more moderate growth is to be expected,” he said. Mr Raimondo added that the March quarter growth was 3.7 per cent, compared to 5.3 per cent in the December quarter. “The market is still growing, but at a much more moderate pace and is far from what would be called a housing ‘boom’,” he said. The quarter has also seen a broader spread of growth suburbs, and two new million dollar-plus suburbs.
“While the top growth suburbs in the previous quarter were dominated by the inner Melbourne areas, growth this quarter occurred further from the CBD – including in Beaumaris, Brighton, Kew, Epping and Sorrento. “And two more suburbs, Bentleigh and Templestowe, joined the million dollar-plus group of suburbs this quarter. There are now 17 suburbs with a median price above $1 million,” he said.
He added that the auction market remains relatively healthy with a surge in the number of auctions and a clearance rate of 72 per cent in the March quarter, falling to just below 70 per cent in April. Demand for Melbourne houses continues to outstrip demand for units with Melbourne’s median unit price increasing by 1.1 per cent to $499,000 during the quarter.
In regional Victoria, the unit and apartment median price in the March quarter grew by 8.2 per cent to $262,500 and the median house price by 1.3 per cent to $322,000.