The cold weather has done nothing to cool Melbourne property prices

From The Real Estate Conversation.

The cold weather hasn’t cooled Melbourne’s property prices: in the three months to 30 June, the city’s median house price increased for the fifth consecutive quarter.

New REIV data shows the metropolitan Melbourne median house price rose 2.9 per cent in the three months to June 30, to $822,000.

The top growth suburbs were spread right across Melbourne, and at both the low and high ends of the market, from Broadmeadows and Roxburgh Park in the north, to Malvern East and Toorak in the south-east.

Croydon in the outer east experienced the city’s largest quarterly increase, up more than 20 per cent to a median of $810,000.

Source: REIV.

REIV acting president Richard Simpson said Melbourne’s property market continues to perform strongly, boosted by a buoyant auction market.

“It has been an exceptional year for the property sector, with numerous auction records falling in the first half of 2017,” he said.

“More than 10,300 homes have gone under the hammer in the June quarter – a record for this time of year.

Simpson attributed the strong price growth to strong population growth, record low interest rates, and strong buyer demand.

“It’s certainly a sellers’ market at present with strong competition for homes across the city, particularly in Melbourne’s more affordable areas,” said Simpson.

Half of the top-growth suburbs are priced below the Melbourne’s median, suggesting buyers continue to seek value further from the city, he said.

Source: REIV.

The data confirms Toorak’s position as Melbourne’s most expensive suburb.

Source: REIV.

Melbourne’s apartment sector performed similarly well in the June quarter, with the metropolitan Melbourne median apartment price increasing 4.3 per cent to $606,500.

“Contrary to popular opinion, Melbourne’s apartment market has been growing steadily for the past year with strong price growth in inner city areas,” said Simpson.

House prices in regional Victoria rose strongly for the second consecutive quarter, up two per cent in June to a record high $385,000.

Author: Martin North

Martin North is the Principal of Digital Finance Analytics

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