Victorian regional centres outperforming Melbourne: REIV

Victoria’s regional house market yielded a stronger result over the past year than Melbourne’s. 

Over the past 12 months the regional increase was 8.5%, according to the REIV June quarter survey.

In Melbourne the median house price increased by 5.7% over the year. The unit median increased by just 1% over the year.

Sales volume in Melbourne was about 22% down on the same period last year.

Of the three main regional centres, strong demand was recorded in Bendigo, with a 4.5% increase in the quarter to $287,500. 

This was followed by Ballarat, with a 1.3% increase to $288,500. 

Geelong’s median house price fell by 3.9% in the quarter to $370,000 but was stable over the year.

The City of Greater Shepparton recorded a 3.6% decline to $280,000. In the Hepburn Shire a 0.9% decrease to $353,000 was recorded.

Median house prices in the Surf Coast Shire dropped by 12.8% to $567,000.

Median house prices in Macedon Ranges Shire increased 17.1% to $575,000. Similarly, the median house price in Mount Alexander Shire increased by 16.5% to $405,000.

“These Melbourne type prices are a sign of increased demand for the entire corridor between Melbourne and Bendigo,” the REIV report noted.

“The result confirms that, following a few years of turbulent conditions in the residential market, the last 12 months have recorded moderate and sustainable price growth,” REIV chief executive Enzo Raimondo says.

“This result is reflective of a market that is now stable, following the GFC and corrective action taken in response.

“Over the medium term, local factors will continue to have an impact, in particular the health of the Victorian economy, population growth and the level of construction and supply,” he says.

The current Melbourne median is slightly below the peak of $601,500 reached in the December quarter 2010.

The report pinpointed a few suburbs that recorded very healthy increases as Prahran, Melton, Frankston South, Mount Martha, Sunbury and Berwick.

With the exception of Prahran, these suburbs all have house prices at or below the median, indicating that demand is still being driven by the housing needs of our growing population.

The strongest demand in the unit market was in Richmond, East Melbourne and Malvern East. 

The median price of a house in regional Victoria increased by 1.6% to $325,000 in the June quarter, up from $320,000 in the March quarter. 

Melbourne’s house median increased 5.4% to $590,000 over the quarter, and Melbourne units jumped by 3.2% to $474,500 over the quarter.