Property prices spring into action and start to gain momentum

THE PROPERTY MARKET IN VICTORIA IS SHOWING STRONG SIGNS OF STABILITY ACCORDING TO THE REIV LATEST QUARTERLY DATA IN SEPTEMBER 2023.

The median price of houses in metropolitan Melbourne has remained relatively flat over the quarter at $933,500 – down from $935,500 while metro units recorded a 1 per cent increase from $627,500 to $633,500.

After more than a year of rate hikes, property prices across the state are starting to gain momentum and they’re expected to rise especially during the Spring 2023 season. This is the first time since June quarter 2021 that all property types recorded a price growth. The biggest gains were recorded in suburbs located in the outer ring of Melbourne with units growing by 1.8 per cent over the quarter.

Despite the decline in property prices over the past 12 months, 30 metro suburbs have recorded new price peaks over the quarter, and more than half are from outer ring. Crib Point recorded a 40 per cent increase on its median house price to $945,000 in September quarter 2023, first time surpassing $900k. St Andrews Beach and Upwey also entered the million-dollar club for the first time this quarter.

Six suburbs that recorded a decline in the June quarter 2023 went up to new price levels the following quarter. Median house price in Bayswater North fell by 12.1 per cent previously and then gained 17.4 per cent increase to $898,000 in September quarter. House values in Westmeadows went down by 10.6 per cent in the June quarter and rose by 18.8 per cent last quarter to $785,500.

For units and apartments, seventeen suburbs in the metro region surpassed their record, led by Oakleigh South with 48.9 per cent price increase to $970,500 – one step closer to $1m milestone.

Sales results for regional Victoria paint a similar picture. A number of suburbs recorded their highest median price, thirty-three suburbs for house value and twenty suburbs for unit value. We have Cohuna in the northwest with 16.1 per cent quarterly increase to $325,000 and Wellington in the eastern side with 16.8 per cent growth to $870,000 for their median house price.

Two suburbs from Greater Shepparton led the movement for unit prices in regional Victoria with Shepparton and Mooroopna experiencing 26.9 per cent and 19.1 per cent growth respectively. There is also a surprise entrant in September quarter 2023 as Mount Buller saw an increase in reported unit sales during winter season this year, making the first recorded median price for the suburb with $1,325,000.