Units and apartments in outer Melbourne increased by 0.6 per cent to $603,000 after three successive median increases.
Over the past five years, outer Melbourne units and apartments have increased 18.8 per cent.
Eight out of the top 20 suburbs for house prices came from outer Melbourne, with Keysborough as the strongest performer, rising 6.8 per cent to $1,015,000.
Prices were steady overall for houses and units in metropolitan Melbourne, recording a 0.1 per cent increase to $916,000 and 0.2 per cent to $628,000 respectively.
Kew (up by 8.5 per cent to $2,810,000) and Burwood (up by 8.4 per cent to $1,452,000) recorded the highest increases in house prices.
Quarterly median price data from the Real Estate Institute of Victoria (REIV) showed modest price changes across the state for the period ending 30 September 2024, but outer Melbourne units and apartments bucked the trend showing considerable growth for the third consecutive quarter.
Units and apartments in outer Melbourne increased by 0.6 per cent to $603,000, just $500 shy of the inner Melbourne equivalent for the same quarter. This was the third consecutive increase in median prices for outer Melbourne contributing to a 1.7 per cent annual increase in median prices in a year that has seen little growth to date.
And REIV’s five-year data points to a longer-term trend with outer Melbourne units and apartments showing an increase of 18.8 per cent to $600,000 over the period. Noteworthy is that this number surpassed that of outer Melbourne house price increase (up by 18.5 per cent $770,000) representing significant value for owners.
Across Victoria REIV’s quarterly data showed a stable market. Metropolitan Melbourne houses and units, rose 0.1 per cent to $916,000 and 0.2 per cent to $628,000 respectively. Regional Victoria saw similar movement with median house prices increasing for the second consecutive quarter, rising 0.1 per cent to $601,500 and units and apartments relatively flat with 0.2 per cent decrease to $418,000.
Quarterly house price growth in metro region was topped by Kew, up by 8.5 per cent to $2,810,000 followed by Burwood up by 8.4 per cent to $1,452,000. Interestingly, eight out of the top 20 suburbs came from outer Melbourne with Keysborough the strongest performer, rising 6.8 per cent to $1,015,000.
Outer suburbs also dominated the annual house growth list with ten suburbs including Diamond Creek (14.9 per cent), Dandenong (10.4 per cent) Wantirna South (6.9 per cent), Dandenong North (6.8 per cent), Wyndham Vale (6.3 per cent), Lilydale (5.9 per cent), Doreen (5.8 per cent), Deanside (5.8 per cent), Croydon (5.6 per cent), and Frankston South (5.3 per cent) making the top 20.
REIV CEO Kelly Ryan said there were lots of positive signs in outer Melbourne with sold units and apartments more than doubling to 102.4 per cent (3,122 to 6,387 reported sales) and house transactions increasing 98.6 per cent over the last five years (14,438 to 28,672 reported sales).
“The growth in median apartment and unit prices for outer Melbourne coupled with extremely strong sales volumes highlights the opportunities that exist in the area for homeowners and investors,” Ms Ryan said.
“Access to schools, transport, amenities and other lifestyle convenience factors are helping to ensure the long-term trend of outer Melbourne looks positive for the future.”
Meanwhile in regional Victoria, Soldiers Hill in the City of Ballarat topped the regional house growth chart, up by 13.3 per cent to $627,500, while Greater Bendigo continues to be the regional hotspot with four suburbs (Heathcote, White Hills, Strathdale, and Maiden Gully) making the top 20 quarterly growth list.
Ms Ryan added that although annual price changes remain relatively steady with a 0.8 per cent decrease in regional Victoria, the five-year trend shows the value of regional property over the long term.
“Regional Victoria saw an increase of 46.3 per cent for houses and 42.6 per cent for units and apartments over five years. These are strong metrics which show regional Victoria continues to attract buyers with good lifestyle appeal and affordable buying options,” she said.
Media Contact: media@reiv.com.au - 03 9205 6607