Melbourne property market hits all-time high

Metropolitan Melbourne also rose by 4.4 per cent in the quarter, the eighth-consecutive quarter of growth for the market.

The apartment median price broke the $600,000 barrier, rising by 2.4 per cent to $607,000 in metropolitan Melbourne.

REIV president Richard Simpson said that despite lower clearance rates, the overall Melbourne market continued to build upon its impressive 2017 year.

“The median for the March quarter last year showed a higher increase than this year, but then again, calendar 2017 turned into the best year since 2010, with overall growth of 13.2 per cent,” the president said.

Mr Simpson said that the market conditions were creating more opportunities for many different types of buyers.

“Continued population growth and interest rates maintained at historically low levels mean that first-time home buyers, more seasoned purchasers and investors are taking opportunities in a market that is longer on demand than supply,” Mr Simpson said.

The top-performing suburbs for Melbourne were spread across the city, with each of the top five located in different local government regions.

Kew topped the list after a 26.9 per cent increase, with prices at $2.7 million. Despite a decline, Brighton was the second most expensive suburb with $2.46 million, and then Hawthorn held the third place with $2.4 million.

Melbourne’s most affordable suburbs could be found in Melton South and Melton West with $407,500 and $468,000 each.

Despite strong growth, there were some small decreases in median prices over the quarter, but more generally, Melbourne’s outer suburbs rose by 2 per cent over the quarter.

Mr Simpson said that regional Victoria’s affordable market offered opportunities for vendors and buyers alike.

“The median price for houses in regional Victoria showed a 1.4 per cent increase, tipping it beyond $400,000, while the median for apartments and units slipped back to just under $300,000,” the REIV president said.