For the first time, Metropolitan Melbourne house values have surpassed a median price of $900,000.
It’s the largest year-on-year increase in median house price seen in the Victorian capital since 2020.
Data from the Real Estate Institute of Victoria’s (REIV) quarterly December report showed that the median value of Melbourne houses jumped by 9.5 per cent between the September and December quarters to land at $941,000.
According to the REIV, the lockdowns saw more households improving their homes throughout the year, which had a flow-on effect to property prices.
The effect was particularly apparent in the typical suburban family belt of middle Melbourne, which saw an 8.0 per cent increase in median values over the quarter to reach $1,066,500. This result was 7.3 per cent above the December 2019 median.
Positive price lifts weren’t confined just to houses, with metro Melbourne units achieving a median price of $639,500 – 2.5 per cent higher than the average in the September quarter and 3.8 per cent higher than the average recorded 12 months ago.
REIV said the city and wider state’s property market was revived following the lifting of lockdowns in October, with the December quarter seeing an estimated 29,500 transactions take place.
According to REIV, this was the highest number of quarterly transactions across 2020, surpassing the March quarter’s total of 27,500.
Ultimately, the Victorian property market held remarkably resilient in 2020, despite bearing the brunt of COVID-19’s negative effects, REIV president Leah Calnan said.
“Throughout the July and September quarters, we received constant reports of low listings and activity. Once restrictions across the state eased, demand and buyer competition skyrocketed.”
“Certainly, low interest rates and government incentives, including stamp duty concessions and first home buyers grants, added to buyer appetite for the December quarter, while volatility and uncertainty in the Australian equity market have secured property as a preferred investment option for Victorians,” Ms Calnan observed.
The positive results from the quarter were also witnessed in regional Victoria, which managed to record its highest quarterly growth figures since 2003.
Over the three months to December, houses in regional areas achieved a median price of $485,500, recording a 9.2 per cent increase from the September quarter and 7.5 per cent annual growth. Over the same period, unit prices recorded a 3.5 per cent quarterly increase, notching up 10.3 per cent annual growth.