Melbourne’s median house price recorded its fastest pace of quarterly growth since 2013 during the March quarter, smashing through the $800,000 barrier for the first time, according to new data from the REIV.
The city-wide median price increased 7.6 per cent in the first three months of 2017 to a record high of $826,000 – up more than $55,000 on December figures.
REIV President Joseph Walton said a range of factors contributed to the rapid growth, which occurred right across the city.
“Melbourne’s property market is experiencing a perfect storm, with price increases driven by strong buyer demand, solid population growth, record low interest rates, and low stock on market," he said.
“Competition for homes, particularly in Melbourne’s inner and middle rings, has encouraged more vendors to take their home to market with multiple auction records falling this year."
Walton said sales were strong across the auction and private markets.
“The city’s buoyant auction market, combined with the strongest private sale market in seven years, has undoubtedly boosted Melbourne’s median house price,” he said.
While increases were recorded across the city, Melbourne’s middle suburbs were the main growth driver, with the median house price increasing 6.1 per cent over the quarter to just over $960,000.
House prices in Templestowe, which is in the north-east of Melbourne, experienced the largest growth, up 17.6 per cent in the March quarter to a median of more than $1.5 million.
Suburbs in Melbourne’s outer ring dominated the list of top growth suburbs during the quarter, with increases of more than 14.5 per cent recorded in Mount Eliza, Cranbourne North, Kilsyth, and Mornington.
Walton said strong price growth was also recorded at the top end of the market, with house prices in inner Melbourne increasing 5.8 per cent to break the $1.5 million mark for the first time.
Solid price growth was also recorded in the apartment sector, with the metropolitan Melbourne median up 3.8 per cent to $583,000.
“We’re not seeing any slowing in Melbourne’s property market, with demand continuing to outstrip supply,” said Walton.
Regional Victoria also performed strongly in the March quarter, with the median house price up 4.1 per cent to $377,000.
To view a property in Templestowe that recently sold, visit Luxury List.
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