The REIV June quarter median prices show moderate growth in the Melbourne property market.
The median price for a detached house in Melbourne has recovered much of the ground lost in the March quarter, increasing by 4.9 per cent from $430,000 to $451,000. This moderate increase in the median price shows that the Melbourne housing market has remained stable.
The median price for units and apartments has continued to show less volatility than detached houses. The median price for a unit or apartment remained steady in the June quarter at $370,000.
Over the longer term, houses and units and apartments have shown similar increases in value with the median price of a house increasing by 27 per cent over five years, compared with 28.9 per cent for units and apartments.
Each week about 1500 people move to Melbourne, ensuring strong demand for property to buy and rent right across the city. This has contributed to the Melbourne residential property market performing better than other capital cities in the current volatile economic conditions.
REIV research reveals there is still some uncertainty in market, which can be seen in declining market sentiment. This is reflected by the reduction in transactions this year compared with the same point in 2007.
However, if economic growth continues and interest rates remain stable, then the local housing market sentiment should improve.
