Melbourne property market enjoys strong year

Melbourne recorded its fastest average property price rise for seven years in 2017, new figures show.

Recently released figures from the Real Estate Institute of Victoria (REIV) figures show that average property prices in the city rose by 1.1 per cent in December – taking growth for the year to 13.2 per cent. This is the strongest annual price growth since 2010. The average price of a property in Melbourne now stands at AUS$821,000.

And experts believe the Melbourne market has yet to reach its peak, with experts predicting further growth in 2018 of between 5 and 8 per cent.

According to the REIV figures, Melbourne’s highest annual growth suburb was Melton South, where house prices rose by a staggering 44.1 per cent to AUS$420,500.

Other suburbs that enjoyed extremely strong property growth included Sunshine West and Glenroy (both up 29.9 per cent), Thomastown (29.1 per cent), and Hoppers Crossing (28.3 per cent).

Cranbourne, Frankston, Lalor, Deer Park and Mount Eliza rounded up the top ten suburbs for strongest growth, with each area recording annual price increase of more than 26 per cent.

The rising house prices in and around Melbourne has helped boost property prices in regional areas of the state, as buyers priced out the city look for a home elsewhere.

“Regional cities and towns within commuting distance of the CBD have certainly benefited from strong price growth in Melbourne, with a number of these areas now recording median house prices higher than those in the outer ring,” said REIV President Richard Simpson.

Prices in regional Victoria rose 10 per cent over the year, bringing the average price for a home outside of Melbourne to AUS$396,500.

Mr Simpson attributed Melbourne’s stellar 2017 to “high levels of interstate and overseas migration, new government initiatives for first-home buyers and record low interest rates”.

Article published 23rd January 2018