Record regional property prices reached as Melbourne maintains its $1million median


Victoria’s residential median property prices have broken new records, with four consecutive quarters showing highest-ever results, according to the Real Estate Institute of Victoria’s (REIV) September quarter report released today.

The REIV report, which contains Victorian real estate’s most accurate and comprehensive data, reveals:

  • an annual growth rate in regional Victoria of 22.8 per cent for houses and 18.8 per cent for units, the highest annual growth recorded for over a decade;

  • median house prices in Geelong, Newtown and Lake Wendouree have reached $1 million for the first time and Wangaratta (19 per cent growth), Lucas (14.1 per cent) and Point Lonsdale (13.4 per cent) are among the state’s top-growth areas;

  • Melbourne has 173 suburbs with at least a million-dollar median house price, with the overall median now $1,072,500 – a 13.8 per cent annual change, six per cent for the September quarter;

  • Keysborough in the Greater Dandenong municipality is Melbourne’s top-growth suburb, lodging a 22 per cent quarterly price rise and median of $1.1m – Beaumaris (16.6 per cent quarterly growth and $2.27m), Frankston South (15.7 per cent and $1.25m) and Ferntree Gully (15.2 per cent and $968,000) are among Melbourne’s other top-growth suburbs; and

  • Hoppers Crossing ($589,000), Tarneit ($592,500) and Cranbourne ($600,000) are Melbourne’s most affordable suburbs;

Adam Docking, REIV’s newly elected President, said price growth is reflective of high demand during a period that had a relatively lower number of listings.

“The September quarter also had the most number of days of complete COVID-19 lockdown, which had significant impact on the real estate market’s workings and, ultimately, resulted in less stock and fewer transactions,” Mr Docking said.

“There’s a distinct correlation between a lack of activity in the market and prices and as Victoria emerges from COVID-19 restrictions, we expect the market to stabilize. That said, a late start to the typically busy spring selling season means momentum should continue through to Christmas, and a return to in-person inspections is giving buyers and sellers more confidence to transact.”

Mr Docking added that a confluence of important events was making regional Victoria more appealing to Victorians.

“The trend in tree or sea change investment and relocation continues with flexible and hybrid workplace arrangements and lockdowns attracting more people to a regional lifestyle.”

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