Melbourne’s median house price has hit $1,004,500 – the first time it has been a seven figure sum.
Homes in regional Victoria are still about half that – $510,500, also a watermark, according to the Real Estate Institute of Victoria.
“Following the lifting of intensive lockdowns in 2020, activity in the property sector returned in Victoria, with an estimated 35,000 transactions in the March quarter, the highest since…March 2015,” REIV president Leah Calnan said.
The median Melbourne house price rose 8.8 per cent in the March quarter.
For the three months ended December, 2020, that increase was 9.5pc.
An average home in ‘middle Melbourne’ – within 10-20 kilometres of the city – will cost $1,148,500, an increase of 6.9pc for the quarter.
Rural houses reported a 4.1pc rise (story continues below).
Regional Victorian units/apartments fared better, according to the REIV – up 5.9pc for the quarter and 19.1pc over the past 12 months.
In Melbourne, the average unit/apartment cost $672,500 – a 4.8pc quarterly surge, but only a 3.4pc rise, for the year.
“High demand across the state has…been fuelled by an increase in activity following Victoria’s lockdowns which saw thousands of auctions cancelled,” Ms Calnan said.
The environment “will gradually begin to settle as life returns to normal following a tumultuous 2020,” the executive added.
Incentives for first home buyers, mortgage repayment holidays and low interest rates are other major drivers, according to the REIV.
The industry body said Balaclava, Carrum, Chelsea, Edithvale and Healesville each reported median house price growth of 30pc or more for the quarter.
East Melbourne was the city’s best performer using this measure – up 50.5pc, to $3,912,500.