This article was originally published by Samantha Landy on 20 JAN 2018 via realestate.com.au
MELBOURNE enjoyed its strongest annual price growth in seven years in 2017, with Melton South, Sunshine West and Thomastown among the year’s best performers.
New Real Estate Institute of Victoria figures show citywide house prices increased for the seventh straight quarter in December, up a modest 1.1 per cent to a median of $821,000.
This took Melbourne’s 2017 price growth to 13.2 per cent — the biggest rise since 2010.
Wakelin Property Advisory director Jarrod McCabe said the figure reflected “some pretty impressive growth for a 12-month period”, predicting another 5 to 8 per cent rise to come this year.
“We’ll see a lot of that in the first three to six months of the year,” he said.
“Interest rates are still low, which is giving people confidence, and our rising population is a key factor in the growth — it’s eating up a lot of housing supply.”
Melton South’s median house price soared 44.1 per cent to $420,500 last year to make it Melbourne’s highest annual growth suburb, according to REIV.
9 Armstrong St sold in November for $1.315 million in strong growth suburb Sunshine West.
It was followed by Sunshine West and Glenroy, both up 29.9 per cent to $720,000 and $810,000 respectively, Thomastown, 29.1 per cent to $688,000, and Hoppers Crossing, 28.3 per cent to $580,000.
House prices in Cranbourne, Frankston, Lalor, Deer Park and Mount Eliza all rose by more than 26 per cent to round out the top 10.
REIV president Richard Simpson said the median house price for Melbourne’s outer suburbs jumped a solid 2.4 per cent to $666,500 in the December quarter.
“Houses within 20km of the CBD are almost out of reach for many first-home buyers, so these buyers are now looking for new entry points to the market, especially in established suburbs with infrastructure, amenities and services,” he said.
Mr Simpson said 2017 was a “record-breaking year” for Melbourne’s auction market, with 25 benchmarks broken.
These included highest number of auctions held in a year and highest number of auction sales in a year.
Real Estate Institute of Victoria president Richard Simpson said 2017 was a record-breaking year for Melbourne’s property market.
Mr Simpson attributed Melbourne’s stellar 2017 to “high levels of interstate and overseas migration, new government initiatives for first-home buyers and record low interest rates”.
He said the modest December quarter was the result of increased supply and reduced investor activity.
Melbourne’s median apartment price rose 1.2 per cent to $594,500 in the final three months of 2017.
And regional Victoria enjoyed a strong end to the year, with house prices up 2.6 per cent to a record $396,500 median. This marked a 10 per cent annual increase.
“Regional cities and towns within commuting distance of the CBD have certainly benefited from strong price growth in Melbourne, with a number of these areas now recording median house prices higher than those in the outer ring,” Mr Simpson said.
Melbourne’s median house price hit $821,000 in the December quarter, according to REIV. Picture: Mark Stewart
Melbourne median house price
—up 1.1% to $821,000 in December quarter
—up 13.2% in 2017 as a whole, the highest annual growth since 2010
Other numbers
—25 auction records broken in 2017, including highest number of auctions and sales in a year
—Melbourne median apartment price up 1.2% to $594,500 in December quarter
—Regional Victoria median house price up 2.6 per cent to $396,500 in December quarter
Top annual growth suburbs of 2017
MELTON SOUTH up 44.1% to $420,500 median house price
SUNSHINE WEST up 29.9% to $720,000
GLENROY up 29.9% to $810,000
THOMASTOWN up 29.1% to $688,000
HOPPERS CROSSING up 28.3% to $580,000
CRANBOURNE up 27.9% to $550,000
FRANKSTON up 27.4% to $650,000
LALOR up 27.1% to $699,000
DEER PARK up 26.7% to $580,000
MOUNT ELIZA up 26.3% to $1,232,500
EPPING up 25.9% to $631,500
SUNBURY up 25.6% to $520,000
CRANBOURNE WEST up 24.4% to $526,500
MENTONE up 24.3% to $1.2m
HAWTHORN EAST up 24.2% to $2.13m
MERNDA up 23.9% to $590,000
ROSEBUD up 23.4% to $624,000
BRUNSWICK up 22.8% to $1.25m
HAMPTON PARK up 22.6% to $567,500
WERRIBEE up 22.6% to $511,250
Source: REIV