This article is from the Australian Property Journal archive
MIDDLE Melbourne’s median house price was dropped below the $900,000 mark for the first time in almost three years.
Data from the Real Estate Institute of Victoria shows prices in suburbs from 10 to 20 kilometres of the CBD are at $894,000, down 1.8% over the quarter to be at its lowest point since September 2016.
REIV president Robyn Waters said the Melbourne property market correction had created ideal opportunities for those wanting to “trade up” into coveted middle suburbs areas such as Eltham, Forest Hill and Mitcham, which all share a median house price of $887,500.
Prices in Greensborough and Heidelberg Heights are at $740,000, and at $837,000 in Vermont.
“Two recent interest rates cuts and APRA’s advice to relax lending standards are among the factors that have cultivated an environment conducive to upsizing,” Waters said.
Median house price across Melbourne fell 2.4% to $785,000 over the 2019 financial year, according to the REIV, while the unit median was unchanged at $590,000.
Inner Melbourne house prices came from by 4.3% over the quarter and 9.8% in annual terms to $1.304 million. Unit prices improved slightly in the three-month period to be at $589,000, slightly below June 2018 levels.
Across the outer suburbs, prices were down by circa 3.0% over the quarter and year-on-year for houses to $622,000, and had slipped to $495,500 for units, 1.1% higher in annual terms.
Only five metropolitan suburbs recorded median house price growth in the period –Sunbury, Donvale, Ascot Vale, Officer and Cranbourne North.
Eight of the top 10 suburbs with a median price increase in the June quarter have a median of more than $1 million, which Waters said indicates a growing confidence in prestigious areas that had recorded negative results in previous quarters.
Mornington saw highest growth in the state throughout the period, of 18.5%, followed by Beaumaris (17.4%), Donvale (15.6%), Templestowe (12.5%), and Williamstown (8.4%).
Also in the top 10 were Bentleigh East, which moved above the $1 million mark with 7.0% growth, and then Malvern East, Kew, Pascoe Vale and Brighton, which all had growth of over 6%.
The metropolitan house price has now fallen for five consecutive quarters, but the rate has slowed down to 1.1% from the 2.5% drop in the December 2018 quarter and 2.0% in the March quarter.
Regional Victoria has seen 3.8% growth in median house price to $404,500 in the past 12 months.
The top five towns for annual median house price growth retained their positions for the second consecutive quarter. Wonthaggi has seen a 21.7% increase over the past financial year to $365,000, while Redan’s increased by 17% and Wendouree’s by 16.8%.
“With auction clearance rates at their highest levels in well over a year and other incentivising factors in the market, the REIV expects the market will continue to pick up in Spring,” Waters said.
While listings and sales volumes remain low, Melbourne’s auction market is on track to record its best monthly clearance rate since 2017.
June’s 67.3% clearance rate was the highest since February of last year.
