Melbourne median house prices fall in see-sawing market
Melbourne’s median has dropped to $551,000, according to the Real Estate Institute of Victoria’s September quarter market update, given concerns about the international economy and negative consumer sentiment. The results equated to more than two-thirds of Melbourne's homes having either lost value or stayed flat in price over the past three months, with just 78 of the 272 reported suburbs growing in value over that time.
Prices have come back $50,000, or 8.3%, from their peak last December.
“We are now experiencing a soft housing market,” REIV chief executive Enzo Raimondo says.
The 2.8% reduction was on the revised June quarter median house price of $567,500.
The result was similar in the unit market, where the median dropped by 2.3% from $467,000 to $465,500 on revised numbers.
The REIV had surprised the market when it initially gave Melbourne’s median house price as $590,000 in the June quarter, which represented a 5.4% jump. The REIV initially has Melbourne’s median unit price as $474,000, which represented a 3.2% rise.
“The recent trend of reduced demand in the more expensive segments of the market has continued,” Raimondo notes.
And the effects of the surge in population between 2005 and 2010 were still bolstering demand in the more affordable suburbs.
“Across Melbourne this means that the outer suburbs have recorded an overall better result than the inner ones have.”
With a 10% annual jump to $385,000, Deer Park topped the list of suburbs recording positive growth over the year.
Positive growth over the year has also been recorded in Wyndham Vale, Sunbury, Caroline Springs, Berwick, Hawthorn and Balwyn, which topped the list of suburbs with its September quarter growth.
Demand in regional Victoria has largely mirrored that in Melbourne, with the median price of a house dropping by 3.1% to $310,000 from $320,000 in the June quarter.
Of the main regional centres, Geelong recorded a 5.7% jump to a median house price of $390,000.
In Ballarat prices were stable, with the median of $285,000, and in Bendigo there was a 2.6% reduction to $277,500.
“The lesson from the GFC, when the median fell by 14%, is that the market will remain subdued until confidence improves in the economy or there is stimulus in the form of lower interest rates,” Raimondo suggests.
Top 10 Growth Suburbs, Houses (Annual)
Note: Only suburbs where a minimum of 30 sales recorded in each quarter are included.
Suburb | Sept-11 Median | Sept-10 Median | Annual Change | |
1 | Deer Park | $385,000 | $350,000 | 10.0% |
2 | Wyndham Vale | $350,000 | $318,950 | 9.7% |
3 | $770,000 | $705,000 | 9.2% | |
4 | $1,300,000 | $1,205,000 | 7.9% | |
5 | Frankston South | $552,500 | $515,000 | 7.3% |
6 | $1,590,000 | $1,490,000 | 6.7% | |
7 | Sunbury | $373,000 | $350,000 | 6.6% |
8 | Berwick | $490,000 | $460,000 | 6.5% |
9 | Newport | $706,750 | $665,000 | 6.3% |
10 | Caroline Springs | $443,500 | $420,000 | 5.6% |
Top 10 Growth Suburbs, Houses (Quarterly)
Note: Only suburbs where a minimum of 30 sales recorded in each quarter are included.
Suburb | Sept-11 Median | Jun-11 Median | Quarterly Change | |
1 | $1,590,000 | $1,280,000 | 24.2% | |
2 | Deer Park | $385,000 | $346,500 | 11.1% |
3 | Brighton East | $1,156,250 | $1,050,000 | 10.1% |
4 | Newport | $706,750 | $655,000 | 7.9% |
5 | Glen Waverley | $768,800 | $722,000 | 6.5% |
6 | Wyndham Vale | $350,000 | $330,000 | 6.1% |
7 | Boronia | $455,000 | $432,750 | 5.1% |
8 | Narre Warren South | $410,000 | $395,000 | 3.8% |
9 | Rowville | $550,000 | $530,000 | 3.8% |
10 | Carrum Downs | $355,000 | $342,500 | 3.6% |
