This article is from the Australian Property Journal archive
AT the close of 2021 Victoria’s residential real estate market recorded stellar levels of growth, with regional prices unsurprisingly the all-star of the year.
According to REIV’s December quarter report, Victoria’s regional median house price saw its most significant annual boost in 20 years, jumping 27% to a record high of $565,000 over 2021.
Units in regional Victoria also had a strong year of growth, recording an annual increase of 19.6% to a median price of $395,950.
“The data reflects the enduring attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions,” said Adam Docking, president of REIV, who also noted the need for improvements to infrastructure investment by the government to keep up with regional growth levels.
Meanwhile in metropolitan Melbourne experienced a 4.2% increase in median house price over the December quarter, reaching $1,125,000, up from $1,080,000 in the previous quarter.
Annually metropolitan Melbourne had its highest boost in annual growth in more than a decade, increasing by 18.9% from last December’s $1,070,000.
Units saw a milder increase, surging by 2.4% for the quarter to $692,000 from $676,00 and 7.1% annually from $680,000 at the same time in 2020.
Houses in inner Melbourne 12.9% in annual growth and 2.3% for the quarter for a median price of $1,778,500. While apartments at a median price of $670,500 were up 4.8% for the year and 3.7% for the quarter.
Median house prices in Middle Melbourne were the only segment to record a fall over the December quarter, dropping 1.5% to $1,254,000, though this was still a significant annual gain of 18.3%.
Apartments and units in Middle Melbourne saw a more reserved increase of 0.7% to $768,500, reflecting an annual increase of 8.5%.
In Outer Melbourne houses saw an increase for the sixth consecutive quarter, with gains of 3.6% to $854,000 or an annual increase of 16.4%. While median unit prices grew by 3.9% for the quarter and 11.3% annually to $632,500.
“At this stage it’s too early to tell. Virus safety is front-of-mind and Victorians are well-adjusted to the protocols they need to prepare for when attending inspections,” said Docking.
Residences sold at auction were also up compared to a more stilted 2020, with a 144% increase reflecting Victoria’s strongest quarter on REIV’s records for auction volume and sales rate with a total of 15,954 auctions and 12,794 clearances over the last quarter of 2021.
“Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021,” concluded Docking.
