Melbourne median house price approaches $1m

The median price for a Melbourne house reached a record high $941,000 last month – a surge of 9.5 per cent since September.

If growth this quarter is as solid as the last, the city’s average home price will smash $1 million.

This time last year, the comparable figure was $850,000, according to the Real Estate Institute of Victoria.

The most recent three-month rise is the biggest since 2000.

Sydney remains the country’s most expensive capital in which to buy a house – REINSW putting the median at $1.15m.

Lockdown upgrades, short supply: reasons for 2020 rise

Melbourne’s middle-ring suburbs recorded a quarterly 8pc median value rise to $1,066,500, the REIV said.

“With most [people] spending more time at home than ever throughout the year, families took the opportunity coming out of lockdown to upgrade their homes,” the industry body which represents real estate agents added in a statement explaining the increase.

“Following the lifting of intensive lockdowns in October, activity in the property sector returned in Victoria, with an estimated 29,500 transactions in the December quarter (story continues below).

“It was the highest number of quarterly transactions in 2020,” (March was 27,500).

REIV president Leah Calnan said the state’s property market “remained remarkably resilient in 2020 despite dire predictions at the on-set of COVID-19”.

“Throughout the July and September quarters, we received constant reports of low listings and activity,” the executive added.

“Once restrictions across the state eased, demand and buyer competition skyrocketed.

“Certainly low interest rates and government incentives including stamp duty concessions and first home buyers grants added to buyer appetite for the December quarter, while volatility and uncertainty in the Australian equity market have secured property as a preferred investment option for Victorians”.

The unit/apartment market showed much slower growth for the December quarter – 2.5pc.

In regional Victoria since September, the median house price rose 9.2pc to $485,500.

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Marc Pallisco

A former property analyst and journalist, Marc is the publisher of realestatesource.com.au.

Marc Pallisco