The median house price for middle Melbourne suburbs has dropped to its lowest level in three years, creating upsizing opportunities for buyers, according to new research from the Real Estate Institute of Victoria.
The REIV June quarterly data report has revealed suburbs located in middle Melbourne — 10–20km from the CBD — have reported a median house price of $894,000.
This marks the lowest it’s been since the September 2016 quarter and is down by 1.8 per cent from $910,000 in the March 2019 quarter.
REIV president Robyn Waters said the decline has created upsizing opportunities for buyers looking to buy into some of the city’s most sought-after postcodes.
“The Melbourne property market correction has created ideal opportunities for those wanting to ‘trade up’ into coveted middle Melbourne areas such as Eltham, Forest Hill and Mitcham, which all share a median house price of $887,500. Meanwhile, a house in Greensborough and Heidelberg Heights will set you back by $740,000 and Vermont’s median house price is $837,000,” Ms Waters said.
“Two recent interest rate cuts and APRA’s advice to relax lending standards are among the factors that have cultivated an environment conducive to upsizing.
“Looking at the overall figures for the 2018–19 financial year, Melbourne’s median house price fell by 2.4 per cent to $785,000 while the unit median remained unchanged at $590,000.”
Oppositely, regional Victoria has seen a median house price increase of 3.8 per cent, according to Ms Waters.
“Regional Victoria has done well in the past financial year, and the top five towns for annual median house price growth have retained their positions for the second consecutive quarter,” she said.
“Wonthaggi has been a standout, recording a 21.7 increase in its median house price over the past financial year to $365,000, while Redan’s median increased by 17 per cent and Wendouree was just behind with a 16.8 per cent increase.
“With auction clearance rates at their highest levels in well over a year and other incentivising factors in the market, the REIV expects the market will continue to pick up in spring.”