Metro Melbourne surpasses $1m mark for the first time

According to REIV data, house prices in Metropolitan Melbourne have soared 8.8 per cent to a median of $1,004,500 – the highest quarterly increase in 12 years and the first time that the area has surpassed the $1 million mark.

Similarly, house prices in Inner, Middle and Outer Melbourne saw quarterly rises of 4.5 per cent, 6.9 per cent and 6.6 per cent, respectively.

Apart from families taking the opportunity to upgrade their home as they come out of intensive lockdowns, the price growth was also boosted by “incentives for first home buyers, mortgage repayment holidays, and low interest rates”, REIV president Leah Calnan said.

Inner and Middle Melbourne joins Metro Melbourne in the $1 million club, with median house prices currently sitting at $1,549,500 and $1,074,500, respectively. Meanwhile, Outer Melbourne has a slightly lower median price of $761,000.

Even regional Victoria broke records over the March quarter, with house prices rising by 4.1 per cent to a median of $510,500 – the first time that the area has surpassed the $500,000 mark.

Ms Calnan expressed her optimism about the growth of property in Victoria as activity returns across the state following a tumultuous 2020.

Over the March 2021 quarter, an estimated 35,000 transactions were recorded in Victoria – the highest since 2015.

“Market statistics show unprecedented levels of buyer interest across Victoria. Sellers and buyers didn’t waste any time getting active in the market.

“High demand across the state has also been fuelled by an increase in activity following Victoria’s lockdowns, which saw thousands of auctions cancelled,” Ms Calnan noted.

Unit prices

All regions in Victoria also saw rises in median unit price, REIV data has shown.

Regional Victoria led the charge with a 5.9 per cent increase, followed by Middle Melbourne with 5.6 per cent, Metropolitan Melbourne with 4.8 per cent, Inner Melbourne with 2.9 per cent and Outer Melbourne with 2 per cent.

Despite the huge hike in prices, regional Victoria still has the most affordable median unit price at $383,500.

On the other hand, Middle Melbourne has the most expensive at $752,500, followed by Metropolitan Melbourne with $672,500, Inner Melbourne with $646,500 and Outer Melbourne with $590,000.

Method of sale

Auctions were proven to be the preferred method of sale across the state, with median house value rising by 3 per cent to $1,186,500 and median unit value rising by 4.2 per cent to $741,500.

In contrast, private sale house prices have increased only by 1.6 per cent to a median of $848,500, while unit prices declined by 1.1 per cent to a median of $611,000.