It is apparent from the REIV’s June quarter figures that property buyers in Melbourne are continuing to seek properties that provide value for money.
REIV data reveals many of the top growth suburbs closely reflect the Melbourne median property price of $451,000. Those suburbs included: Hillside ($330,000), Glenroy ($381,000), Coburg ($538,500), Cheltenham ($575,000), Mount Martha ($525,000), Mulgrave ($473,075) and Wheelers Hill ($566,888).
Growth has not been as strong this year when compared with the first half of 2007, but the market has remained steady.
The top 10 growth suburbs in 2007 had growth rates of between 21 per cent and 60 per cent, whereas this year, the top 10 growth suburbs only experienced growth of between five and 12 per cent.
Glen Iris, which topped the list with 12 per cent growth in the June quarter, would not have made the top 10 a year ago.
While the increase of 4.9 per cent in Melbourne’s median price from $430,000 in the March quarter to $451,000 in June was reasonable, it was not as dramatic as last year when buyers were often priced out of suburbs in a matter of weeks.
Overall, this is a good outcome for the local market as last year’s increases were not sustainable. The more moderate increases this quarter provide buyers with more opportunities to enter the housing market.
The most expensive suburbs did not change, with the popular inner east and bayside areas of Brighton, Canterbury, Kew, Armadale, Hawthorn, Balwyn and Camberwell dominating the list.
