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The lockdowns in Victoria have not dented consumer confidence when it comes to purchasing property, with Melbourne holding its $1 million median price tag, new research has revealed.
Quarterly data released by the REIV shows the median house price in metropolitan Melbourne will still set you back seven figures at $1,010,000.
While Melbourne had a temporary blip in price growth, REIV president Leah Calnan said the market is holding its strong position as interest rates remain at record lows.
“Buyers and sellers across the state are still active within a growth market, with all metrics holding strong,” Ms Calnan said.
Ms Calnan said strong sales through winter, usually a slower quarter, prove the strength of the city’s property market.
While low rates are continuing to spur on buyers, Ms Calnan believes June’s quarterly spike can also be attributed to changes in stamp duty incentives.
“With stamp duty concessions for first home buyers ceasing at the end of June, we saw enthusiastic interest in the weeks leading up to 30 June,” Ms Calnan said.
The REIV stats show that Melbourne was the outlier when it came to price growth, with the rest of the state showing strong growth over the quarter.
According to data, house prices in regional Victoria grew by 10.5 per cent on the quarter and almost 20 per cent on the year — the highest on record — reaffirming the trend in tree- or sea-change investment and relocation.
The median price in regional Victoria as of the end of June was $559,500.
“The stand-out insight from REIV’s June quarter report is the propensity for buyers to genuinely consider regional Victoria as an attractive option for living and investing,” she said.
Ms Calnan pointed to changing working arrangements, with the COVID-19 pandemic meaning workers can live further out from the city.
“We know that COVID-19 has created flexibility in employment arrangements and hybrid working models are allowing people to set their property sights beyond Melbourne. It’s also true that there are plenty of investment opportunities in regional areas,” she said.
Ms Calnan added that the Victorian government has also been active in providing incentives for businesses and residents to set up shop and home in regional Victoria.
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