Melbourne recorded solid property price growth in the June quarter, according to new data from the Real Estate Institute of Victoria, defying the slowing economy and a softer national market. 

In the three months to 30 June, Melbourne’s median house price increased 3.6% to a record high $725,000 – the largest price growth since September 2015.

Gains were recorded across Melbourne at both ends of the market – from high-end Toorak, through to Wyndham Vale and Roxburgh Park. Camberwell, Prahran and Richmond experienced double-digit growth.

The affordable suburbs of Hillside in the city’s outer north west, St Albans, Sunshine West and Sunbury also recorded significant growth.  

REIV Chief Executive Officer, Geoff White, said the figures show real strength in the Victorian market.

“National data from the Real Estate Institute of Australia shows that most states, apart from Melbourne and Adelaide, have experienced moderating home prices in the opening months of 2016.”

White pointed out that price growth is slower than at the market peak in late 2014 and early 2015.

“Just over a year ago we were seeing quarterly price growth just above five per cent,” he said.

“While growth is now below four per cent, it is still solid, given market conditions.”

White said there were fewer property listings this quarter, down by around 300 per week across Melbourne compared to last year.

“While fewer sellers are putting their homes on the market, prices are still extremely solid,” he said.

“The message to vendors is that the market is still bubbling along nicely – and that, given the sales results and prices, those looking to list their homes should do so prior to spring. Now is a great time to sell.”

Source: REIV.

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