In good news for buyers, the latest REIV quarterly results show that Melbourne’s median house price has remained relatively stable in the first three months of 2016 at $713,000. For the second consecutive quarter the city’s outer suburbs recorded the highest median increase, up 0.5 per cent to $557,500. Melbourne’s desirable inner suburbs also rose marginally in the March quarter, up 0.2 per cent to a median of $1,256,500.
Top growth suburbs this quarter were widespread across the city with a mix of million dollar suburbs and areas traditionally known for their affordability. Malvern East in Melbourne’s inner east experienced the highest quarterly increase, up 13.7 per cent to a median house price of $1,729,000.
Growth was also recorded in middle ring suburbs Epping and Bentleigh East, up 10.8 and 9.9 per cent respectively.
Other areas seeing price growth in the March quarter were outer suburbs Caroline Springs, up 9.6 per cent to $570,000; Werribee, up 9.4 per cent to $380,000; Langwarrin, up 8.8 per cent to $502,500; and Doreen, up 7.6 per cent to $511,000.
Continuing growth in suburbs more than 20km from the CBD signals ongoing buyer demand in areas that offer value and affordability.
After With listings and auction volumes set to increase in late April, buyers will have plenty of opportunities to get a foothold on the property ladder.
MILLION DOLLAR SUBURBS
Melbourne had 77 million dollar suburbs in the first three months of the year, up from 61 for the same period last year.
Three new suburbs entered the list for the first time in the March quarter with a median house price of $1 million or more. New entrants this quarter were Ascot Vale ($1,165,000) and Brunswick West ($1,050,000) in Melbourne’s inner north and Mentone ($1,026,000) in the city’s south east. A further four suburbs – Waterways, Wonga Park, Moonee Ponds and Highett – rejoined the million dollar club in March.
Melbourne’s most expensive suburbs were predominately in the city’s east and south east with Kew and Hawthorn topping the list with median house prices of $2,325,000 and $2,035,000 respectively.
Other suburbs making the most expensive suburbs list were Brighton ($1,897,000), Camberwell ($1,890,000) and Glen Iris ($1,825,000).
When suburbs with less than 30 sales are included, Toorak remains Melbourne’s most expensive suburb with a median house price of $3,275,000.
Melbourne’s outer suburbs remain home to some of the city’s most affordable suburbs. Wyndham Vale in Melbourne’s outer west was the most affordable suburb in the first three months of 2016 with a median house price of $350,000. This was followed by Cranbourne and Sunbury with median house prices of $366,500 and $370,000 respectively.
Also on the list of most affordable suburbs were Werribee, Pakenham ($383,000), Hoppers Crossing ($410,000) and Tarneit ($415,000).
Unit and apartment prices moderated in the March quarter, falling 1.8 per cent to a median of $525,500 after growth of 1.6 per cent in December. Port Melbourne was the best performing suburb for apartments this quarter, increasing more than 19 per cent to a median unit price of $815,000.
Double-digit growth was also recorded in Footscray, up 16.3 per cent to a median unit price of $426,500; Bentleigh, up 12.7 per cent to $1,000,000; and Pascoe Vale, up 12.3 per cent to $498,500.
Bentleigh was the only suburb to record a million dollar median for apartments this quarter.
Carlton remains the city’s most affordable suburb for apartments with a median unit price of $250,000. Other areas offering affordable apartments below the citywide median were St Albans with a median unit price of $316,000 and Frankston at $324,275.
About the author: The Chief Executive Officer of realestateVIEW.com.au, Enzo Raimondo is an authoritative source of information for the Victorian property market and is now the vision of the industry owned real estate listing portal – realestateVIEW.com.au