Melbourne house prices have increased by as much as 25%

Author: Jayitri Smiles - Herald Sun

Median sale prices have rocketed back up as much as 25 per cent in just three months in Melbourne suburbs, with Preston and Coburg top performers entering the million-dollar club. Median sale price figures increased as much as 25 per cent across 65 suburbs during the September quarter, according to new Real Estate of Victoria data, rapidly bouncing back from the downturn.

Victoria’s capital had an overall price jump of 4.5 per cent to $830,000, following five straight quarters of falling prices. It’s the best three-month result since March 2017.

Preston and Coburg were top performers, becoming seven-figure suburbs after prices increased 25.7 per cent to $1.11 million and 20.8 per cent to $1.02 million respectively.

Barry Plant Northcote agent Fedele Dennaoui said the two suburbs offered “sought-after value”.

“The return of first-home buyers has increased demand for property and there seems to be a fair few more people looking to buy before Christmas,” Mr Dennaoui said.

“There’s a lot happening around here and the gentrification we’ve seen means there’s more (demand) to come.”

A shortage of stock was contributing to the price gains, he added.

Other suburbs with huge median price gains included Beaumaris (20.1 per cent to $1.825 million), Mulgrave (19.1 per cent to $881,000) and Mt Martha (16.8 per cent to $1.115 million).

The data only takes into account houses that have sold in postcodes with more than 30 sales per quarter.

But Newport and Donvale were the only two suburbs to defy the downturn, with higher median house prices than they had a year ago. They both recorded growth of less than 1 per cent in the past 12 months, to median prices around the $1 million mark.

REIV president Leah Calnan said Melbourne’s market was ripe for sellers.

“Enthusiasm is growing as prices surge and properties are being snapped up more quickly. This is the perfect time to get on the market,” Ms Calnan said.

“Growing prices and increasing sales is great news for everybody and our market is in the midst of a much-needed recovery.”

Auction clearance rates have remained above 70 per cent for 17 weeks in a row, which she said was another promising sign.

Regional Victoria’s median house price rose 0.9 per cent in the quarter and 3.8 per cent in the year to a $408,500 median. Bendigo’s house price had shot up 29.7 per cent to $517,500 in the 12 months to September.

Source: news.com.au