Million dollar median smashed as Melbourne property boom continues to grow
14 July 2014
http://www.reiv.com.au/News_Publications/Latest-News?newsID={0CE11A6E-B543-4942-9ADC-7C4A30439E29}&title=Million dollar median smashed as Melbourne property boom continues to grow
The city’s property boom has notched another record this year, with the 87 suburbs within 10km of the Melbourne CBD passing the “magic million dollar median” house price for the first time.
Inner Melbourne stretches from Coburg in the north, Ivanhoe in the east, Caulfield in the south and Tottenham in the city’s west.
The median price for inner Melbourne was just less than $1 million at December 31 last year, yet by March had reached $1,014,500 and by the end of June smashed the million dollar mark - reaching $1,027,500.
REIV Chief Executive Officer Enzo Raimondo said that the June quarter median for inner Melbourne homes represented yet another record in the city’s biggest ever property boom.
“We’ve already seen the city’s median price – which includes all properties sold across inner, middle and outer Melbourne - grow by more than $100,000 since the current strong cycle began in mid-2013,” he said.
“This growth, from a citywide median price of $547,500 in the June quarter last year, represents a greater median value increase than we’ve seen in recent strong cycles, including 2010 and 2007 – even back to 2001,” he said.
“Now we’ve seen the inner Melbourne median house price stretch well beyond the magic million dollar level, setting yet another benchmark.”
Mr Raimondo said that lower interest rates, on hold for 11 months, and strong investment had helped to push inner Melbourne to the new record.
This market strength was reflected in the number of auctions across the city, including inner Melbourne: “The number of auctions across inner Melbourne is much higher than last year – with almost 1000 more auctions than this time last year,” he said.
“There have been about 7,450 auctions in inner Melbourne this year – compared to just over 6,500 this time last year - with an average clearance rate of 74 per cent. That is well ahead of the Melbourne-wide average of 71 per cent,” he said.
Last weekend more than 500 homes went to auction – “about 30 per cent more than on the same weekend last July”, he said.
"With about 600 homes expected to be auctioned next weekend, and 700 in a fortnight,
the market shows no signs of slowing at present."
Inner Melbourne Wrap
Total number of suburbs: 87
Most expensive suburban median (March Q 2014): Toorak - $2.43m
Most affordable suburban median (March Q 2014): Maidstone - $555,000
