Historic house prices for regional Victoria; Melbourne holds the line

MEDIA RELEASE

The median house price in metropolitan Melbourne is $1,010,000 and $559,500 in regional Victoria, according to data released today from the Real Estate Institute of Victoria.
 
The REIV’s June quarterly report reveals that metropolitan Melbourne is holding steady above $1 million and is confirmation that the historic March quarter result was not a one-off spike following the 2020 lockdowns.
 
Regional Victoria’s 10.5 per cent quarterly growth and almost 20 per cent annual growth in house prices – the highest on record – reaffirms the trend in tree or sea change investment and relocation.
 
REIV President Leah Calnan said that as expected, the metropolitan market is holding its strong position as interest rates remain at record lows.
 
“Buyers and sellers across the state are still active within a growth market, with all metrics holding strong,” Ms Calnan said.
 
“Winter is typically a relatively low activity period but this year was different — Victorians are out there making property decisions,” she said.
 
Many factors have contributed to the above-average number of sales during the June quarter, including an end to some stamp duty incentives.
 
“With stamp duty concessions for first home buyers ceasing at the end of June, we saw enthusiastic interest in the weeks leading up to 30 June,” Ms Calnan said.
 
“The stand-out insight from REIV’s June quarter report is the propensity for buyers to genuinely consider regional Victoria as an attractive option for living and investing,” she said.   
 
“We know that COVID-19 has created flexibility in employment arrangements and hybrid working models are allowing people to set their property sights beyond Melbourne. It’s also true that there are plenty of investment opportunities in regional areas,” she said.
 
Ms Calnan added that the Victorian Government has also been active in providing incentives for businesses and residents to set up shop and home in regional Victoria.
 
Other key findings from the June report include:

• An increase from 155 to 177 metropolitan suburbs with at least $1 million median house prices.
• Auction clearance rates have stayed above 80 per cent since January 2021. June quarter 2021 saw the highest number of auctions held and sold for any June quarter, with 11,904 reported and 9,880 sold.
• Days on market (private sale) for regional Victoria was 29 days in June 2021, five days below the metropolitan median figure of 34 days.
• Mornington Peninsula dominated the municipalities list, racking up three of the top 20 suburbs in quarterly growth, and five in the top 20 suburbs for annual growth
• Toorak remains the most expensive suburb, but Hawthorn East recorded an extraordinary 42.2 per cent quarterly increase.
• The City of Greater Geelong recorded a median house price of $695,000, a 7.9 per cent quarterly increase from its March median of $644,000. 
• Ringwood East recorded a median house price of $1.2 million, a 32.3 per cent quarterly increase from its March median of $907,000.