Median House Price in Melbourne hits record breaking high of $830,000
REIV “Melbourne’s median house price smashing through the $800,000 barrier for the first time”
Melbourne continues to have the strongest population growth and a very high insatiable demand for property to own or rent; plus a very low supply of vacant dwellings … add to this historical low interest rates all coming together at the same time! No wonder prices are rising as they are
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.”
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.
Source REIV April 2017
Melbourne apartment price growth leaped ahead of house price growth in the first three months of the year, as unit values surged 4.6 per cent in the country’s second-largest city; Domain Group chief economist Dr Andrew Wilson’s latest State of the Market Report showed. Melbourne’s unit median sits at a record $494,000.
Melbourne’s growth outdid Sydney, where house prices gained 2.8 per cent and units just 1.3 per cent.
“Melbourne is the clear top performer and will continue to stay there,” Dr Wilson told Domain.
Melbourne houses will rise 10 per cent this calendar year and units 7 per cent, while Sydney houses will gain 7 per cent and units 3 per cent, Dr Wilson said.
Our take on this is = now is as good a time to invest based on
- Continued and planned population growth – Melbourne in the year 2051 will have 10 Million Residents requiring another 2 200,000 new dwellings read more here
- Interest rates globally remain at historical low’s with no real sign of increasing by any significant amount in the near future
- Demand for property in Melbourne (and all capital cities in Australia) at an all time high
- Supply of new dwellings struggling to keep up to this growing demand
- Continued government & industry investment into new infrastructure
- New city hubs being created outside of Melbourne inviting industry and thus population growth
- Looks like the Commonwealth Games will be coming back to Victoria and by design will be held in Regional Melbourne thus inviting and encouraging major infrastructure investment into that location altering the face of that burgeoning city forever
- Any off the plan project planned and designed a couple of years ago has also been priced at the time of planning. Since then property land values have increased dramatically. What this means to you is that you are securing your investment based on values of 2 to 3 years ago! Think about it …
- Banks unfortunately are toughening up their Lending Criteria, the sooner one invests and invests in the ‘right’ investment the easier it will be to leverage and thus fund the investment
- By securing the ‘right’ investment (a very low percentage of properties actually lend themselves to being sound investments) means you will be able to secure your second, third or fourth property in your portfolio that much sooner … further improving your chance of a prosperous life
The above plus other market factors and underpinning fundamentals present to you a potential opportunity of a lifetime!
Read our recent article on why changes to stamp duties, talk about negative gearing etc is purely political posturing by the Vic Govt here; you CAN NOT deliberately grow a population by design … then penalise investors who put up their hands to provide a roof over the heads of this growing population with being inflationary because rents will rise dramatically to cover these costs/losses = or investors will refrain from investing so where will your population live?
Article read here