REIV December quarter median prices reveal that house and unit values have remained relatively stable over the quarter. The median house price in metropolitan Melbourne was $550,000, representing a minor increase of 1.9% from a revised September quarter median of $540,000.
The top 10 growth suburbs in the REIV’s December quarter medians are listed below.
A review of suburbs with the highest growth rates over the past year (detailed below) provides a more accurate picture on areas that have experienced actual capital growth.
Units and apartments in higher demand
The performance of the unit and apartment market mirrored that of houses, with the median price increasing by 1.1% to $455,000. The largest increases were recorded in North Melbourne, Armadale and West Footscray but this does not tell the whole story, as some areas of Melbourne recorded stronger demand for units than they did for houses.
Not surprisingly, one of those areas was the City of Yarra, where the median house price increased by 2.4% compared to 11.8% for units and apartments. This is largely due to the fact that, in this inner city area, people can buy a unit at a much more affordable price than they could a house.
The second area was the City of Maribyrnong, where the median house price reduced by 0.8% compared to an 8.2% increase for units and apartments. This indicates that there is strong demand for higher density accommodation in this area.
Finally, this trend is also apparent in the City of Frankston, where the median price of a house increased by 0.1% compared to 6.7% for units and apartments.
As we head into 2012, there is no doubt that housing affordability has improved with the combination of lower house prices and two interest rate reductions. This is likely to provide buyers with some good opportunities in the coming year.