Melbourne house prices drop by 1.4 per cent in first quarter of 2019 - REIV

Housing figures from the Real Estate Institute of Victoria have identified Melbourne's outer suburbs as some of the state's biggest growth areas.

Melbourne's outer northern suburbs have recorded some of the biggest housing growth in the state for the first quarter of 2019, according to the Real Estate Insitute of Victoria.

Data from the REIV has revealed that two of the top three performers were within the Shire of Nillumbik.

According to the research, the median house price in Eltham increased 7.3 per cent to $950,000 in the January- March 2019 quarter, while Greensborough’s median house price soared 6.0 per cent to $808,000.

REIV President Robyn Waters said the figures reflected a continuation of the types of growth seen throughout last year.

“Consistent with 2018 trends, some outer areas continue to do well with Narre Warren South sitting second on the top 10 list for median house price growth with a 7.1 per cent increase," she said.

"Mulgrave is at number four with a 4.7 per cent increase and Point Cook in fifth place, also with a 4.7 per cent increase. 

"Interestingly, we are also starting to see signs of recovery in Inner Melbourne with Glen Iris and Balwyn North making the top 10 this quarter, recording increases of 4.3 per cent and 4.2 per cent respectively.” 

Overall, Melbourne’s median house price fell 1.4 per cent in the first quarter of 2019 to dip below $800,000 at $793,000. 

Ms Waters said next month's election would delay any potential change to the market.

“The market was fairly stagnant in 2018 as vendors resolved to stay put and renovate or extend rather than take their chances on selling in an uncertain market and I think we’ll need to wait until after the Federal Election to see any major change to that climate,” Ms Waters said. 

“Looking at the annual picture, the top 10 performers for median house price growth between April 2018 and March 2019 were all in Outer Melbourne demonstrating the popularity of affordable options for families who have their heart set on the ‘great Australian dream’. 

"In suburbs like Sunbury, Craigieburn and Wollert you can still secure a great family home for $500,000 to $600,000 which is attractive to potential owner-occupier and investors."

The REIV figures show that regional Victoria continues to outperform the Metropolitan Melbourne property market with substantial gains of almost 10 per cent recorded in some towns this quarter and a 1.0 per cent increase overall in the median house price. 

Four of the top 10 towns for median house price growth in the March quarter were in the Ballarat area: Redan topped the list with an increase of 9.8 per cent to $357,000, Ballarat East was at seventh with a 4.4 per cent increase to $355,000, just ahead of Soldiers Hill at eight with a 4.3 per cent increase to $485,000 and Brown Hill with a 3.5 per cent increase to $440,000.

Ms Waters said the results were even more impressive when considering the annual performance of regions such as Redan.

“In the 12 months to March 30, 2019, Wonthaggi, Redan and Wendouree reported growth of more than 24 per cent, which is a resounding endorsement for the property market’s in these areas, given the current cooler climate. 

"Strong annual growth was also found in Stawell, Bendigo, Irymple, Trafalgar, Mount Clear, Wallan and Maryborough.” 

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