Outer Melbourne and regional Victoria continue to set record prices

Melbournians have continued to leave the inner-city, with values in outer suburbs and regional areas at record highs.

The Real Estate Institute of Victoria’s June Quarterly Median Report showed outer Melbourne houses (20km+ from the CBD) had reached their highest quarterly median price, with a 0.9 per cent increase to $856,000.

Annually prices have jumped 12.6 per cent.

REIV President Richard Simpson said markets across Victoria remained resilient.

“The market remains strong, especially across regional Victoria,” Mr Simpson said.

“As expected, we saw a slight decrease in metro Melbourne as the market adapts to the current rising interest rate environment.”

Despite rising prices, outer suburbs are still ranked as some of the most affordable locations for aspiring homeowners with Melton South ($510,575), Wyndham Vale ($580,000) and Werribee ($600,000) among Melbourne’s most affordable pockets according to the REIV.

Regional Victoria’s median prices held strong with property values rising across houses, units and apartments. 

The median house price in regional Victoria has climbed 21.6 per cent in the year to June, starting at $500,000 and rising to $608,000. 

Units in regional Victoria peaked at $418,000 in the June quarter – a new price record representing a 14.5 per cent increase over the financial year. 

According to the REIV, numerous regional areas had strong growth, with median house prices in Horsham spiking more than 40 per cent, while Stawell recorded a 26.5 per cent increase and Morwell an annual jump of 30 per cent. 

Despite a 2.9 per cent median house price fall to $1,081,000 across Metropolitan Melbourne, annual growth is still sitting at 13.5 per cent, led by North Melbourne (43.3 per cent) and Ormond (33.8 per cent).

Mr Simpson said despite some pressure from the Reserve Bank of Australia, Melbourne continued to see strong property price growth.

“While there has been discussion on the impact of interest rate rises on house prices, it’s important to note that Melbourne has recorded over 23 per cent increase in home prices over the last two years,” he said.

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Rowan Crosby

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