Victorian property values continue to rise following a pandemic-driven market downturn.
Melbourne home values increased 0.4 per cent in January, with quarterly growth jumping 2.1 per cent, CoreLogic data showed. Regional Victoria recorded a healthy 1.6% increase.
Meanwhile, housing values nationwide hit a new record high, CoreLogic’s national home value index showed.
Every capital city recorded a rise in property values in the past month, with a 0.9 per cent lift to the national figure. This was a 1 per cent rise over pre-COVID levels and overtook the previous September 2017 market peak by 0.7 per cent.
During the quarter, Melbourne recorded a 2.1% increase in values, outperforming the Sydney market which achieved 1.6% growth. Regional Victoria recorded quarterly growth of 4.8% just pipping the 4.7% regional New South Wales achieved.
Record low interest rates, changes to stamp duty and builder grants supported a lift in buying numbers, CoreLogic Head of Research, Tim Lawless said.
“As buyer numbers rise, available inventory has remained low,” he said.
“This creates some urgency among buyers and in turn adds to the upwards pressure on home values.”
“Buyer demand is mostly being fuelled by a surge in owner occupiers rather than investors,” Mr Lawless said.
“Especially first-home buyers which now represent one third of owner-occupier demand.”