Inner suburbs hit new high

The median price for a home in Melbourne’s inner suburbs has topped $1.1 million for the first time.
REIV Chief Executive Officer, Enzo Raimondo, said the $1,164,500 median price for the first three months of this year was up from $1,099,000 in the December quarter – a six per cent increase.

“This is a year-on-year change of 11.7 per cent in the inner suburbs’ median – that is, those within 10 km of the Melbourne CBD. This reflects the strength of the Melbourne market in the low interest rate environment and the demand for homes close to transport and excellent infrastructure,” he said. 

Mr Raimondo said eight of Melbourne’s top 10 most expensive suburbs are located in inner Melbourne including Toorak, Camberwell, Hawthorn and Malvern East.

“Toorak’s house prices increased 15.8 per cent this quarter and with a median of $3,300,000 remains Melbourne’s most expensive suburb.”

Inner Melbourne median house prices have been on the rise since June 2012 when the median price was $848,500.

“By the September quarter of 2013 the median price of $971,500 broke the previous record, set in March 2010. Since then, there has been an increase every quarter and with it, a new record. By March last year the inner Melbourne median had broken the $1,000,000 barrier.”

The buoyant inner city auction market was driving the price growth, Mr Raimondo said.

“There have been 7600 auctions across Victoria in the year to date, 4200 of them in March, when there were four “super Saturdays” – that is, weekends with more than 1000 homes going to auction.”

The 76 per cent clearance rate for the year to March 31 is the highest for five years, boosted by strong investor interest and solid consumer sentiment. Inner Melbourne also had the fastest private sales in March with the number of days on market there falling by 11 to 38.

The March quarter median price of a home in the middle ring suburbs was $791,000, up 4.4 per cent on the December quarter, while in the outer suburbs the $503,500 median was up 0.2 per cent.

Mr Raimondo said the median house price for metropolitan Melbourne for this year’s March quarter was $688,000, up 3.5 per cent on the December quarter’s $664,500 median. That’s a year-on-year change of 10 per cent.

Apartment prices were also up across the city with the $519,500 median up 2.2 per cent on December and 5.2 per cent year-on-year.

While outer suburbs Diamond Creek, Rye, Truganina and Wantirna South all saw quarterly increases of more than 10 per cent, Melbourne’s outer ring was also home to the some of the city’s most affordable. This includes Werribee, Hoppers Crossing, Wyndham Vale and Pakenham all with median prices between $315,000 and $352,000.

“There are still plenty of affordable suburbs in Melbourne, especially for buyers looking for space further from the CBD,” he said.