Melbourne maintains $1 million median price as regions boom

House prices across Victoria remain incredibly strong, with the Melbourne median price above $1 million and regional areas growing at a record pace.

The latest data from the Real Estate Institute of Victoria (REIV), shows the annual growth rate in regional Victoria of 22.8 per cent for houses and 18.8 per cent for units is the highest annual growth for over a decade.

After another strong quarter, Melbourne now has 173 suburbs with at least a million-dollar median house price, with the overall median sitting at $1,072,500.

The median house price in Geelong, Newtown and Lake Wendouree has also reached the $1 million mark while Keysborough in the Greater Dandenong municipality is Melbourne’s top-growth suburb, with a staggering 22 per cent rise over the quarter.

Source: REIV

Adam Docking, REIV’s newly elected President, believes the rapid price rises are a combination of tight supply and continued strong buyer demand. 

“The September quarter also had the most number of days of complete COVID-19 lockdown, which had a significant impact on the real estate market’s workings and, ultimately, resulted in less stock and fewer transactions,” Mr Docking said. 

“There’s a distinct correlation between a lack of activity in the market and prices and as Victoria emerges from COVID-19 restrictions, we expect the market to stabilise.

“That said, a late start to the typically busy spring selling season means momentum should continue through to Christmas, and a return to in-person inspections is giving buyers and sellers more confidence to transact.”

Mr Docking said the regional areas continued to be particularly appealing in the current climate. 

“The trend in tree or sea change investment and relocation continues with flexible and hybrid workplace arrangements and lockdowns attracting more people to a regional lifestyle.” 

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.