The REIV’s release of the December quarter median prices showed the single largest increase in the median price of a Melbourne house in the history of the series.
REIV CEO Enzo Raimondo said that the increase in the median price by 12.8 per cent to $485,000 was remarkable, but not surprising as 2007 was a consistently strong year for the Melbourne property market.
"The increase in the median price by 12.8 per cent, from $430,000 in September 2007 to $485,000, is the largest we have ever seen and is clearly not sustainable in the medium or longer term.
"Growth in the prices people are willing to pay for a home is being driven by strong demand. The Victorian economy is going very well which is leading to an increase in migration, confidence and what people are willing to pay.
"It is interesting that as the number of homes on the market has increased, by 21 per cent compared to the December 2006 quarter, so to has demand. The median price of a Melbourne has now doubled in seven years. In the March quarter of 2000 the median was $242,128.
"Essendon tops the list of Melbourne suburbs with the highest demand in the quarter with a 22 per cent increase, from $709,000 to $865,500.
"Other Melbourne suburbs in list of fastest movers demonstrates how evenly spread the growth has been and where people are looking for value outside the traditional areas.
"Suburbs in the west, north west and middle and outer east are being taken notice of. Glenroy has increased by 18 per cent with a median now of $382,000, Altona has increased by 16.4 per cent to $505,000 and Lilydale by 14 per cent to $382,000.
Units and apartments recorded more moderate growth, with the median price increasing by 5.4 per cent in the quarter from $370,000 to $390,000.
Victoria’s main regional centres also recorded more moderate changes in value, Ballarat’s median increased by 2 per cent to $233,500, Greater Bendigo’s showed a minor drop of 0.9 per cent to $228,000 and Greater Geelong’s increased by 5.1 per cent to $327,500.
The data is collected from over 19,000 sales in the months of October, November and December. Full suburb details are available on www.reiv.com.au from 26 January.
Source: REIV, By Enzo Raimondo, 5/02/2008
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