Jumping by 9.5 per cent from the previous quarter to land at $941,000, Victoria has had it’s largest increase in property prices since 2000.
The Real Estate Institute of Victoria (REIV) said they received constant reports of low listings and activity throughout the July and September quarters.
Following the lifting of intensive lockdowns in October, activity in the property sector returned in Victoria, with an estimated 29,500 transactions in the December quarter.
It was the highest number of quarterly transactions in 2020, surpassing the March quarter at 27,500.
The typical suburban family belt increased by 8 per cent from September to reach $1,066,500, with house values at 7.3 per cent above the December 2019 median.
Regional Victoria also saw traction in the market, recording its highest quarterly growth since 2003.
Houses achieved a median price of $485,500, recording a 9.2 per cent increase from the previous quarter, and 7.5 per cent annual growth.
Regional unit prices recorded a 3.5 per cent quarterly increase, and are 10.3 per cent more valuable than they were 12 months ago.
Units in metro Melbourne achieved a median price of $639,500, 2.5 per cent higher than the September quarter and an annual increase of 3.8 per cent.
REIV President Leah Calnan said the Victorian property market has remained remarkably resilient in 2020 despite dire market predictions at the onset of COVID-19.
“Throughout the July and September quarters, we received constant reports of low listings and activity. Once restrictions across the state eased, demand and buyer competition skyrocketed,” Ms Calnan said.
“Certainly low-interest rates and government incentives including stamp duty concessions and first home buyers grants added to buyer appetite for the December quarter, while volatility and uncertainty in the Australian equity market have secured property as a preferred investment option for Victorians”.