Outer Melbourne has joined regional Victoria in seeing record-breaking prices as city slickers opt for tree- and sea-changes in the wake of pandemic lockdowns, according to the Real Estate Institute of Victoria (REIV).
The REIV’s June Quarterly Median Report showed the total Melbourne metropolitan median house price dipped 2.9% over the June quarter to $1.081 million and units and apartments by more 1.3% as housing markets cool in the major capitals in the face of affordability issues and rising interest rates. That dragged down Melbourne’s annual growth to 13.5%.
Leading the charge in unit growth was North Melbourne, surging 43.3% to $666,500, followed by Ormond, which recorded a 33.8% quarterly increase to $709,000.
“While there has been discussion on the impact of interest rate rises on house prices, it’s important to note that Melbourne has recorded over 23% increase in home prices over the last two years,” REIV president, Richard Simpson said.
“The market remains strong, especially across regional Victoria. As expected, we saw a slight decrease in metro Melbourne as the market adapts to the current rising interest rate environment.”
ANZ economists are expecting Melbourne prices to fall by 15%, while the Commonwealth Bank is tipping a wipeout of up to 18% by the end of next year. AMP Capital’s chief economist Shane Oliver has forecast a top to bottom fall up to 20%.
According to the REIV, outer Melbourne houses – those 20 kilometres and further out from the CBD – reached their highest-ever quarterly median price, with a 0.9% increase to $856,000, according to the REIV. That takes annual price growth for outer Melbourne houses to 12.6%.
Outer suburbs still rank as some of the most affordable spots, but the price rises will put an extra squeeze on for aspiring homeowners. Melton South ($510,575), Wyndham Vale ($580,000) and Werribee ($600,000) are all among the more affordable pockets.
Inner Melbourne median house prices fell 1.3% to $1.737 million and units and apartments by 0.8% to $650,500. Across the middle ring, houses were also down 1.3% to $1.223 million and units and apartments by 1.4% to $736,000.
Regional house prices are still on the up, rising 1.3% in the June quarter to a median of $625,000, while units and apartments grew 2.8% to $435,500.
Annually, regional Victoria prices jumped by 21.6% from $500,000 to $608,000. Units peaked at a new record of $418,000 in the June quarter, up 14.5% year on year.
Median house prices in Horsham, in the Wimmera region in the state’s west, skyrocketed by more than 40% to $393,750.
But that there are also still “plenty of bargains in the bush”, said Simpson.
Stawell sits top of the list offering homebuyers a $322,500 median, despite a 26.5% increase over 12 months, while Morwell jumped by 30% but still offers a median price tag of $325,000.
| Jun-22 Quarter | Mar-22 Quarter | Quarterly Change | 12 months to Jun-22 | 12 months to Jun-21 | Annual Change | |
| Metropolitan Melbourne | ||||||
| House | $1,081,000 | $1,113,500 | -2.9% | $1,108,000 | $976,000 | 13.5% |
| Unit and Apartment | $670,500 | $679,000 | -1.3% | $681,000 | $660,000 | 3.2% |
| Regional Victoria | ||||||
| House | $625,000 | $617,000 | 1.3% | $608,000 | $500,000 | 21.6% |
| Unit and Apartment | $435,500 | $423,500 | 2.8% | $418,000 | $365,000 | 14.5% |
| Jun-22 Quarter | Mar-22 Quarter | Quarterly Change | 12 months to Jun-22 | 12 months to Jun-21 | Annual Change | |
| Inner Melbourne | ||||||
| House | $1,737,000 | $1,760,000 | -1.3% | $1,770,000 | $1,660,000 | 6.6% |
| Unit and Apartment | $650,500 | $655,500 | -0.8% | $660,000 | $640,000 | 3.1% |
| Middle Melbourne | ||||||
| House | $1,223,000 | $1,239,000 | -1.3% | $1,251,000 | $1,125,000 | 11.2% |
| Unit and Apartment | $736,000 | $746,500 | -1.4% | $755,000 | $740,000 | 2.0% |
| Outer Melbourne | ||||||
| House | $856,000 | $848,500 | 0.9% | $850,000 | $755,000 | 12.6% |
| Unit and Apartment | $631,500 | $628,500 | 0.5% | $625,000 | $590,000 | 5.9% |
| Jun-22 Quarter | Mar-22 Quarter | Quarterly Change | 12 months to Jun-22 | 12 months to Jun-21 | Annual Change | |
| Auctions | ||||||
| House | $1,231,000 | $1,229,000 | 0.2% | $1,250,000 | $1,170,000 | 6.8% |
| Unit and Apartment | $786,000 | $784,500 | 0.2% | $790,000 | $740,000 | 6.8% |
| Private Sale | ||||||
| House | $952,500 | $951,500 | 0.1% | $950,000 | $851,000 | 11.6% |
| Unit and Apartment | $596,000 | $608,500 | -2.1% | $602,000 | $610,000 | -1.3% |
