Melbourne House Prices Hit New Peak

Melbourne house prices have risen to a new record median of $658,000, with the city’s median price up 3.3 per cent over the three months to 30 June.  Real Estate Institute of Victoria CEO Enzo Raimondo – releasing the REIV’s quarterly results today – said that the record median capped off a strong year for the city’s property sector.

“The Melbourne market remains strong and continues to show solid gains,” he said.  “The housing sector has delivered a 16.7 per cent year on year increase.  “Unit and apartment prices also grew – by 9.1 per cent year on year – with the June median also a record at $502,000.”

Mr Raimondo said growth had slowed, but was still steady. The median house price was up from $637,000 in the March quarter – however the quarterly 3.3 per cent increase was lower than the 9 per cent recorded in the September quarter last year.  “It was the city’s middle ring suburbs, highly sought after by buyers priced out of the inner-city, which showed the most substantial house price growth,” Mr Raimondo said.

He added that there had also been high-rise growth, with apartments benefitting from increases.  “Apartments in the inner-city, which had previously suffered from an oversupply, also showed strong growth as Melburnians embrace inner-city apartment living. This sector grew by more than 3 per cent in the June quarter,” he said.

The middle Melbourne house price of $720,000 was up 1.8 per cent in the June quarter but represented 15.8 per cent year-on-year growth. Inner-city house prices grew 12.1 per cent year-on-year, while for the outer suburbs the figure was 10.4 per cent.  Mr Raimondo said that low interest rates, which have been on hold for 11 months, and strong investment had helped to push Melbourne house and apartment prices to higher levels this quarter.

Source: www.reiv.com.au