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Despite facing macroeconomic and policy pressures, a new report showed several Melbourne suburbs have regained lost ground during the downturn and rejoined the seven-figure price tag club in June.
The Real Estate Institute of Victoria’s (REIV) quarterly median data showed the average value of metropolitan units rose 3.2 per cent to $630,500.
The figures revealed that the biggest gainers during the period were units in the eastern suburb of Mount Waverley, where the average price of an apartment climbed almost 25 per cent to $1,245,000.
During the quarter, the prices of million-dollar units in bayside suburbs experienced a significant growth. Property values in Hampton soared by 20.1 per cent, reaching an average price of $1,105,000.
Similarly, prices in Brighton East also witnessed a substantial climb of 14.9 per cent, resulting in an average price of $1,402,500.
And while metropolitan houses recorded a 1.1 per cent decline to $937,500 in the three months to June, data showed the sector also notched gains during the period, mostly across middle Melbourne houses.
Another market to return to the high-price club is the eastern suburb of Mulgrave, growing from $970,000 to $1,135,000 with a 17 per cent increase.
Other suburbs that returned to a million-dollar median included Patterson Lakes ($1,116,000 from $865,000), Sandhurst ($1,100,050 from $965,500), Knoxfield ($1,080,500 from $862,500) and Heidelberg Heights ($1,032,500 from $905,000).
REIV president Mr Andrew Meehan said stability defines the state’s property market despite macroeconomic and policy pressures. He noted attractive selling and buying windows opening for participants in both metropolitan and regional areas.
“In another quarter of interest rate rises, it’s encouraging to see such stability across Victoria’s property market,” he said.
“Middle Melbourne is particularly buoyant, transaction volumes remain strong and there are affordable buying opportunities in some of our state’s beloved coastal towns. We expect to see this stability continue into the second half of the year,” Mr Meehan added.
In regional Victoria, quarterly house prices rose 0.6 per cent statewide to $604,500 (from $601,000), while unit medians fell 2.6 per cent to $411,500 (from $422,500).
Mansfield, located at the foot of the Victorian Alps, recorded the greatest quarterly house price increase of 9.9 per cent to $830,000 in the June quarter. Data showed the median house price for Swan Hill rose to $472,500, bringing annual growth to 30.5 per cent – the highest among regional municipalities.
Despite the decline in regional unit values during the quarter, REIV noted several regional towns experienced notable price increases in their unit markets.
In Moe, prices surged by 16.8 per cent, reaching $232,500 from $199,000. Similarly, Horsham saw a significant rise of 16.7 per cent, with prices reaching $385,000 from $330,000. Additionally, in Bairnsdale, prices increased by 14.3 per cent, reaching $368,500 from $322,500.
But according to REIV, there are also opportunities remaining for those looking to enter the state’s regional market on a budget.
The institute noted buyers seeking homes in sought-after inner suburbs could look to pockets like Kew and Malvern, which recorded quarterly declines in median house prices of more than 9 per cent to $2,900,000 and $2,775,000, respectively.
In outer Melbourne, several affordable suburbs became more attractive for buyers, with Melton South houses sitting at $460,000 (down 2.4 per cent) and Harkness at $570,000 (down 3.4 per cent).
It also highlighted affordability improved in several of the state’s most prized coastal towns, with Ocean Grove houses down 10.6 per cent at $1,050,000 and Inverloch houses down 3.8 per cent at $1,000,000.
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