Melbourne House Prices Hit New Peak Despite Slower Growth

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Melbourne house prices have risen to a new record median of $658,000, up 3.3 per cent over the three months to June 30.

Real Estate Institute of Victoria CEO Enzo Raimondo, said the record median capped off a strong year for the city’s property sector.

“The Melbourne market remains strong and continues to show solid gains.

“Unit and apartment prices also grew with the June median also at a record $502,000,” Mr. Raimondo said.

The median house price was up from $637,000 in the March quarter – however the quarterly 3.3 per cent increase was lower than the 9 per cent recorded in the September quarter last year.

“It was the city’s middle ring suburbs, highly sought after by buyers priced out of the inner- city, which showed the most substantial house price growth,” Mr Raimondo said.

He added that there had also been high-rise growth, with apartments benefitting from increases.

“Apartments in the inner-city, which had previously suffered from an oversupply, also showed strong growth as Melburnians embrace inner-city apartment living. This sector grew by more than 3 per cent in the June quarter,” he said.

The middle Melbourne house price of $720,000 was up 1.8 per cent in the June quarter but represented 15.8 per cent year-on-year growth. Inner-city house prices grew 12.1 per cent year-on-year, while for the outer suburbs the figure was 10.4 per cent.

Mr Raimondo said that low interest rates, which have been on hold for 11 months, and strong investment had helped to push Melbourne house and apartment prices to higher levels this quarter.

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