Melbourne housing boom ends at the expense of regions
After two quarters of stellar growth, Melbourne’s median house price rose just 0.5 per cent in the three months to June 30, 2021, according to the Real Estate Institute of Victoria.
The average dwelling now costs $1.01m – up from $1.0045m in March.
The body, which represents real estate agent members, said in the last three months, 11,904 properties were auctioned and 9880 of them sold – a record for any June quarter.
“Many factors have contributed to the above-average number of sales…including an end to some stamp duty incentives [on June 30],” REIV president Leah Calnan said.
The average Melbourne house spent 34 days on the market.
Regions keep booming
By comparison, values in regional Victoria experienced another solid quarter – up 10.5pc – to $559,000, according to the REIV.
In the three months to March 31, they rose 5.9pc.
For the financial year, the growth rate was almost 20pc – the highest on its record (story continues below).
“The standout insight from REIV’s June quarter report is the propensity for buyers to genuinely consider regional Victoria as an attractive option for living and investing,” Ms Calnan said.
“We know that COVID-19 has created flexibility in employment arrangements and hybrid working models are allowing people to set their property sights beyond Melbourne,” she added.
“It’s also true that there are plenty of investment opportunities in regional areas,” according to the executive.
“The Victorian government has also been active in providing incentives for businesses and residents to set up shop and home in regional Victoria”.
Outside of Melbourne, the average home took 29 days to sell in the June quarter.
The number of Victorian suburbs with a seven figure median has increased from 155 to 177, according to the REIV.
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