Property prices in Melbourne improved marginally in the June quarter although remain down on the same time last year, new data from the Real Estate Institute of Victoria (REIV) has revealed.
“The median price has fallen 5.3 per cent over the past 12 months but, as the overall median has not changed in the past six months, this indicates that the market has plateaued and is likely to remain like this until confidence improves," REIV CEO Enzo Raimondo said.
“The median price of a house in metropolitan Melbourne increased by 2.9 per cent to $535,000 from a revised March median of $520,000; and the median price of a unit increased by 2.3 per cent to $450,000 from a revised March median of $440,000."
Mr Raimondo said the lacklustre property market was the result of a number of economic factors, slowing population growth as well as continuing low levels of consumer confidence.
“As a result, there has been no real capital growth recorded in the residential market so far this year,” he said.
“After the initial price falls in 2011, the market is now in a period of stability marked by low activity.
“The overall median has not changed in the past six months, indicating that the market has plateaued and is likely to remain like this until confidence improves.”
Units are retaining their value better than houses, Mr Raimondo added.
“When compared to the housing market, we have seen fewer fluctuations in the median price for units/apartments,” he said.
“Both buyers and sellers are approaching the market in a conservative manner. This is translating into a lower number of sales than is present in a strong market and as a result, no real capital growth has been recorded.”
The data is at odds with the recent June results reported by Victoria-based group Barry Plant, which posted 102 more sales than in June 2011 – an increase of 15.9 per cent.