This article is from the Australian Property Journal archive
HOUSE prices in regional Victoria saw record growth over the June quarter as the growth of hybrid working has allowed people to look beyond Melbourne.
According to REIV’s June quarterly report, median house prices in metropolitan Melbourne were at $1,010,000 holding steady after a historic first quarter, with low interest rates continuing to support the market.
“Buyers and sellers across the state are still active within a growth market, with all metrics holding strong,” said Leah Calnan, president of REIV.
Across the quarter the number of metropolitan suburbs with a $1 million median house price or above grew from 155 to 177.
While Toorak is still the most expensive suburb, Hawthorn East saw the greatest quarterly growth at 42.2%, while Ringwood East median prices grew by 32.3% to $1.2 million.
Within the Mornington Peninsula there were three suburbs in the top 20 for quarterly growth and five suburbs in the top 20 for annual growth.
“Winter is typically a relatively low activity period but this year was different — Victorians are out there making property decisions.”
The quarter included the greatest number of auctions held and sold in any June quarter, with 11,904 auctions reported and 9,880 properties sold at auction. With clearance rates still above 80%, which has been the case since January.
In regional Victoria, median house prices for the quarter grew by 10.5% to $559,500, which is a near 20% increase for the year and the highest annual increase on record.
“We know that COVID-19 has created flexibility in employment arrangements and hybrid working models are allowing people to set their property sights beyond Melbourne. It’s also true that there are plenty of investment opportunities in regional areas,” said Calnan.
Greater Geelong recorded a median house price of $695,000 for the quarter, which was a 7.9% increase.
Properties in regional areas also spent less days on the market, at 29 days, compared to metropolitan Melbourne’s 34 days.
“The stand-out insight from REIV’s June quarter report is the propensity for buyers to genuinely consider regional Victoria as an attractive option for living and investing,” said Calnan.
Another force contributing to strong quarterly sales was the wrapping up of some stamp duty incentives.
“With stamp duty concessions for first home buyers ceasing at the end of June, we saw enthusiastic interest in the weeks leading up to 30 June,” concluded Calnan.
