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Prices for regional Victorian houses increased by the greatest percentage in two decades during the previous 12 months, new data from the Real Estate Institute of Victoria (REIV) has revealed.
In 2021, the median house price in regional Victoria grew 27 per cent to reach a new high of $565,000.
Units and apartments also took a leap forward in the state’s non-metropolitan areas, recording annual growth of 19.6 per cent, bringing the median price to $395,950.
REIV president Adam Docking put the record year of growth down to the state’s appeal, coupled with changes brought about by the pandemic.
“The data reflects the enduring attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions,” Mr Docking said.
Though he noted that the Victorian market had recorded large increases in bustling urban centres as well.
Melbourne recorded an annual increase of 18.9 per cent – the highest rate of growth in over a decade.
In middle Melbourne, a popular area for families, houses reached a median price of $1,230,000, with an annual increase of 18.3 per cent.
While in outer Melbourne, houses are on a trajectory of six consecutive quarters of growth, with a median price 16.4 per cent higher than they were last year, coming in at $815,000.
With the capital city experiencing protracted lockdowns that curbed real estate activity in 2020, it’s perhaps unsurprising that auction figures came in at 144 per cent higher in 2021 than in the 12 months prior.
The year ended with a forecast for further growth on the horizon. With 15,954 auctions and 12,794 sales, the December quarter recorded the strongest ever performance for both auction volume and sales in any quarter.
Mr Docking said that while he expects the market to stabilise eventually this year, the impact of the latest COVID-19 wave is still unclear.
“At this stage it’s too early to tell. Virus safety is front-of-mind and Victorians are well-adjusted to the protocols they need to prepare for when attending inspections,” he said.
“Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021.”
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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