Outer Melbourne hits record property prices

The state’s leading real estate body reported that outer homes in Melbourne (or suburbs located 20 kilometers or more from the central business district) rose 0.9% in the three-month period. ending in June.

The latest quarterly gain took the average home value in the area to $856,000 – the highest quarterly median price for the suburban cluster. It also represented a $7,500 increase in the average home price on a quarterly basis.

Compared to the same period last year, Melbourne exterior house prices have increased by 12.6%.

Despite the strong growth in values, REIV pointed out that there are still affordable pockets in the Outer Melbourne region for aspiring owners, including Melton South ($510,575), Wyndham Vale ($580,000) and Werribee ($600,000). $).

Recent price increases have also put Melbourne’s outer suburban median price on par with regional Victoria, which has continued to generate strong property value growth over the past three months.

The data showed that the median house price in regional Victoria saw a 21.6 per cent annual increase from $500,000 to $608,000 in the three months to June.

Meanwhile, units in the Victoria area posted 14.5% growth over the year, with the sector hitting a new record median price of $418,000.

REIV noted that several regional suburbs have seen exceptional price growth over the past year, such as in Horsham, where median house prices jumped more than 40% year-on-year to $393,750.

Strong price growth should not deter those looking to buy property from adding the Victoria area to their prospect list. According to REIV, there are still areas that have seen phenomenal growth but have not ruled out bargain hunters.

For example, although Stawell saw a 26.5% increase in median year-over-year value, REIV pointed out that the city continues to be an affordable option with an average home price of $322,500. The same goes for Morwell, which still offered a median price of $325,000 after seeing a 30% annual increase.

The strong quarterly performance of Outer Melbourne and Greater Victoria contrasts with that of homes in metropolitan Melbourne, which saw a 2.9% decline in median prices over the period.

The decline brought the median home price in the downtown area to $1,081,000, down $32,500 from the previous quarter.

But REIV chairman Richard Simpson pointed out that the quarterly decline had not shaken metro Melbourne’s impressive 13.5% annual increase.

“While there has been some discussion about the impact of interest rate hikes on house prices, it is important to note that Melbourne has seen a rise of over 23% in house prices over the past few months. last two years.

He also pointed out that overall government market fundamentals remain strong in a rising rate environment.

“The market remains strong, particularly in the Victoria area. As expected, we saw a slight decline in Melbourne Metro as the market adjusts to the current environment of rising interest rates,” he said.

As prices have fallen, metropolitan Melbourne has also seen its share of standouts, particularly in the unit sector.

North Melbourne, where prices rose 43.3% from $465,000 to $666,500, led the charge in metro Melbourne unit growth. This was followed by Ormond, which posted a quarterly increase of 33.8% to $709,000.

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Outer Melbourne hits record property prices



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Last update: July 20, 2022

Posted: July 20, 2022