Melbourne’s strong price growth “probably has some time to run still” based on sales data from Barry Plant Group.
The Victorian-based company said it exceeded vendor price expectations for 40 per cent of listings during the September quarter, according to a survey of the 80-office network.
Narre Warren, Frankston and Sunshine reported that 90 per cent of sales exceeded vendor expectations.
The average price achieved in the quarter was 15.7 per cent higher than the year before.
Results were particularly strong in Melbourne’s east and south-east, across both inner and outer markets.
Barry Plant reported that 40 per cent of its offices reported strong investor activity, notably in affordable suburbs such as Frankston, Sunbury and Noble Park.
Strong first home buyer activity was also reported by 40 per cent of offices.
That was most prominent in the outer suburbs of Melbourne, but also higher-priced areas such as Essendon, Blackburn and Mordialloc.
According to the survey, 63 per cent of offices found that days on market declined between the June and September quarters.
Barry Plant chief executive Mike McCarthy said rising property prices throughout Victoria have generally increased sellers’ expectation of sale price.
“The results of the survey overall support our data showing that the market in the middle to outer suburbs is still strong and probably has some time to run still,” he said.
According to CoreLogic RP Data, Melbourne house prices rose 13.9 per cent in the year to October, while unit prices increased 3.4 per cent.