Melbourne’s property market stabilises as outer suburbs drive growth

Date: 16 Oct 23


For the first time since the June 2021 quarter, houses and units across inner, middle, and outer Melbourne all recorded growth according to the Real Estate Institute of Victoria’s quarterly median data for September 2023

Statewide, the data shows growing signs of stability as outer suburbs drive Victorian price growth, up 1.3 percent (for houses) and 1.8 per cent (for units) compared to last quarter.

Victoria’s top 20 suburbs for house price increase was dominated by outer suburbs, led by Keysborough (up 13.2 per cent), Rye (13 per cent) and Ringwood East (up 12.2 per cent) for the past quarter.

The Mornington Peninsula boasted significant growth in median house price as Victorians remain fans of the beachside suburbs; Crib Point up to $945,000 (40 per cent), Somerville up to $932,500 (22.3 per cent), Tootgarook up to $1,020,000 (18.6 per cent), and Blairgowrie up to $1,775,000 (17.7 per cent).

Suburbs in the eastern Melbourne recorded strong price growth including a new entrant to the million-dollar suburbs club, Upwey, reaching $1m for the first time this quarter with a median house price of $1,060,000.

Unit and apartment prices also saw a quarterly rise from $627,500 to $633,500, an increase of 1.0 per cent across metropolitan Melbourne.

For units, Toorak recorded the highest quarterly increase of 39 per cent, bouncing back to above $1m level at $1,292,500, making it the most expensive suburb for median unit price in September quarter 2023.

Bentleigh East comes in second following a quarterly growth of 5.6 percent, up to $1,290,000. Brighton East, Brighton, and Glen Waverley rounded out the top five most expensive suburbs for units.

In regional Victoria, both houses and units remained stable showing no quarterly change compared to June 2023. Regional houses again sat at a median of $604,500 and units at $416,500. Regional houses have now recorded medians over $600,000 for eight consecutive quarters.

Benalla is the top performing regional suburb this quarter, with a 13.6 per cent increase, both quarterly and annually, to $460,000.
Mr Jacob Caine, recently elected REIV President, said this quarter reflects the state’s continued recovery, recognising a period of opportunity for both buyers and sellers.

“As expected, stability has continued into the latter half of 2023 with the quarter showing strong signs of recovery on property prices across Melbourne and regional Victoria. For buyers, this is a good time to enter the market after a period of some uncertainty.”

“Sellers can feel confident to list and sell their properties as well, with consistent buyer demand. Auction clearance rates have been tracking above 70% for almost all of 2023, with an average of weekly clearance rate of 75% year to date. With clearance rates high, we expect this growth is likely to continue over coming months and into 2024.” said Mr Caine.

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