Talk of slow auction clearance rates and rumblings of a depressed real estate prices have failed to slow the Victorian property market, according to a recent report from the Real Estate Institute of Victoria (REIV).
The value of homes sold on the private market increased 13.6% over the past 12 months, noted the REIV, while those sold at auction produced a 0.6% increase. REIV President Robyn Waters said, “We’ve all heard the ‘doom and gloom’ commentary about a downturn in Melbourne’s property market, but the median house price has increased 5% in the past 12 months."
Meanwhile, markets in regional Victoria outperformed Melbourne with a 9.1% increase in the median house price, according to the REIV. In Outer Melbourne, the median house values rose 7.1%, and the unit median increased by 9.8%.
Most of the standout suburbs in Melbourne were in the city’s middle and outer rings. These suburbs include Mount Eliza, Essendon, Keysborough, Coburg, Greenvale and Narre Warren South. Only two Inner Melbourne suburbs featured in the top 20 growth list.
Robyn explained, “Properties are being tightly held in Inner Melbourne as vendors wait out this period while the market in Outer Melbourne and Regional Victoria are stronger as buyers are inclined to snap up more affordable options.”
Tighter lending conditions are contributing to tighter market conditions in Melbourne's inner-ring suburbs, while outer ring suburbs and regional Victorian markets are benefiting from first homebuyers’ incentives that encourage them to purchase affordable properties, Robyn noted.