Melbourne’s median house price has recorded its strongest quarterly price growth since 2013 to smash the $800,000 barrier for the first time, new data from the REIV shows.
The citywide median increased 7.6 per cent in the first three months of 2017 to a record high $826,000 – up more than $55,000 on December figures.
A range of factors had contributed to significant price growth across the city.
“Melbourne’s property market is experiencing a perfect storm with price increases driven by strong buyer demand, solid population growth, record low interest rates and low stock on market.
“Competition for homes, particularly in Melbourne’s inner and middle rings, has encouraged more vendors to take their home to market with multiple auction records falling this year.
“The city’s buoyant auction market, combined with the strongest private sale market in seven years, has undoubtedly boosted Melbourne’s median house price.”
While increases were recorded across the city, Melbourne’s middle suburbs were the main growth driver with the median house price increasing 6.1 per cent over the quarter to just over $960,000.
House prices in Templestowe in the north-east experienced the largest growth, up 17.6 per cent in the March quarter to a median of more than $1.5 million.
Meanwhile suburbs in Melbourne’s outer ring dominated the list of top growth suburbs this quarter with increases of more than 14.5 per cent recorded in Mount Eliza, Cranbourne North, Kilsyth and Mornington.
Mr Walton added price growth was also recorded at the top end of the market with house prices in inner Melbourne increasing 5.8 per cent to break the $1.5 million mark for the first time.
Solid price growth was also recorded in the apartment sector with the metropolitan Melbourne median up 3.8 per cent to $583,000.
“We’re not seeing any slowing in Melbourne’s property market with demand continuing to outstrip supply.”
Regional Victoria also performed strongly in the March quarter, with the median house price up 4.1 per cent to $377,000.