Buyers spoilt for choice in face of outer Melbourne growth

Date: 20 Apr 16

Buyers are likely to be spoiled for choice in the coming months, with Melbourne’s property market set to march-medians-news-pic.jpgexperience stronger May and June sales after a slow start to 2016.

For the second consecutive quarter - Melbourne’s median house price has remained relatively stable at $713,000 for the three months to March 31 - as shown in the REIV’s quarterly results released today. 

REIV Chief Executive Officer, Enzo Raimondo, said the stable median house price and an upcoming high number of auctions – from late April through to early June – represents positive news for buyers.

“The moderate market will allow many more owner occupiers, including some families, strong opportunities to get a foothold on the property ladder.” 

He added that the forecast strong listings, coming off the back of what has been a big 12-18 months, will further add to buyer opportunities, with a wider array of homes on offer. 

“Traditionally March is one of the strongest months for property sales with high auction volumes and listings. This year has been slower, mainly due to the consecutive Labour Day public holiday, followed by Easter and the school holidays – pushing many auctions and private sales into late April and May,” he said.  

In the first three months of 2016, outer Melbourne again proved to be the best performing area of Melbourne, with most of the top growth suburbs in the north and west of Melbourne. 

REIV President Geoff White said that this included Epping, Caroline Springs and Werribee – and followed strong growth in the outer north-east in the December quarter, when Warrandyte recorded strong growth.

Mr White said that “Epping and Bentleigh East recorded growth of 10.8 and 9.9 per cent respectively”.

“The only suburb within 10km of Melbourne within the top three suburbs was Malvern East, which delivered quarterly growth of around 13 per cent,” he said. 

“Other outer suburbs delivering high quarterly growth were Langwarrin, Doreen Rowville and Keysborough. In fact, twelve of the top 20 growth suburbs were in outer Melbourne.

“This signals continuing buying demand for homes in the city’s outer suburbs, as homebuyers look for value further from the CBD in the current market,” Mr White said.

The median house price in Melbourne’s outer ring – that is, more than 20km from the CBD – reached $557,500 this quarter, up almost $3000 on December.

Meanwhile, unit and apartment prices fell slightly across the city, down 1.8 per cent in the March quarter to a median of $525,500. The decline follows solid growth of 1.6 per cent in December.