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Melbourne median house price up again in June quarter to $822,000, REIV reports

MELBOURNE’S median house price has risen for the fifth consecutive quarter, with the city remaining a “seller’s market”, but growth is tipped to cool.

The citywide median jumped 2.9 per cent to $822,000 in the three months to June 30, according to the Real Estate Institute of Victoria.

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The figure was $770,000 at the end of 2016 and surpassed $800,000 for the first time at the end of March.

It comes as the latest NAB Residential Property Survey predicted the Melbourne house market would continue to experience “solid, albeit slower, growth in prices” this year and next, with the gains ultimately returning to “more sustainable levels”.

It forecast house prices to grow 7.5 per cent this year and 5.5 per cent next — a fair drop-off from 2016’s 15.1 per cent gains.

The survey found housing market sentiment and confidence had fallen in the June quarter as local investors retreated, but first-home and foreign buyers were more active.

The latter accounted for 20.8 per cent of new property sales in Victoria in that period, up from 13.8 per cent in the previous quarter, and 9 per cent of sales in the established market.

This was despite China’s crackdown on capital outflows into overseas property and a raft of new restrictions and taxes on foreign ownership introduced in the latest federal budget, NAB chief economist Alan Oster said.

NAB group chief economist Alan Oster.

NAB group chief economist Alan Oster.Source:News Limited

The REIV data shows Melbourne’s middle and outer suburbs were the main drivers of the June quarterly growth, led by Croydon in the outer east, where the median soared 20.4 per cent to $810,000.

“It’s certainly a sellers’ market at present with strong competition for homes across the city, particularly in Melbourne’s more affordable areas,” REIV acting president Richard Simpson said.

Mr Simpson said more than half the city’s top growth suburbs in the most recent quarter were priced below the metropolitan median, including Broadmeadows, up 17.4 per cent, Deer Park, 16.9 per cent, Roxburgh Park and Melton West, both 14.1 per cent, and Mernda, 13.3 per cent.

The sustained growth was the result of unprecedented population increases, record low interest rates and strong buyer demand, he said.

A record 10,300 homes also went under the hammer in the June quarter.

CoreLogic state director for Victoria Geoff White expected the Melbourne median to continue to rise as the year went on, but said growth could moderate as a rush of homes hit the market in spring, giving buyers more choice.

“It will continue the way it is unless something changes — interest rates going up or unemployment growing,” he said.

CoreLogic state director for Victoria Geoff White.

CoreLogic state director for Victoria Geoff White.Source:Supplied

The REIV figures show Melbourne’s apartment sector also performed strongly in the June quarter, with the citywide median up 4.3 per cent to $606,5000.

And house prices rose for the second consecutive quarter in regional Victoria, up 2 per cent to $385,000.

The NAB report tipped Armadale, Brighton, Footscray, Frankston, Kew, South Yarra, St Kilda and the CBD to enjoy “above average growth” in the next year.

samantha.landy@news.com.au

MELBOURNE: THE JUNE QUARTER

<a href="https://www.realestate.com.au/sold/property-house-vic-malvern+east-124996430">24 Kerferd St</a>, Malvern East fetched $3.2 million at the start of the June quarter.

24 Kerferd St, Malvern East fetched $3.2 million at the start of the June quarter.Source:Supplied


Top growth suburbs

CROYDON: up 20.4% to $810,000

DONCASTER EAST: up 19.1% to $1.441m

MALVERN EAST: up 17.4% to $2.025m

BROADMEADOWS: up 17.4% to $540,000

DEER PARK: up 16.9% to $590,550

BEAUMARIS: up 14.6% to $1.69m

ROXBURGH PARK: up 14.1% to $513,500

MELTON WEST: up 14.1% to $397,000

TEMPLESTOWE LOWER: up 13.6% to $1.33m

MERNDA: up 13.3% to $521,250


Most affordable suburbs 

MELTON SOUTH: $342,500

MELTON WEST: $397,000

WYNDHAM VALE: $450,000

SUNBURY: $452,500

PAKENHAM: $460,000

Most expensive suburbs

TOORAK: $4.75m

MALVERN: $2.75m

BRIGHTON: $2.6m

KEW: $2.29m

BALWYN: $2,255,500

Source: REIV