Regional Victoria has seen a boom in the price of smaller homes, with units and apartments recording significant price growth in the past three months.
The unit and apartment median price grew by 8.2 per cent in the three months to 31 March this year, to $262,500.
House prices also grew to a new median price high of $322,000, however the growth over the quarter was lower than for units, at 1.3 per cent.
REIV Chief Executive Officer Enzo Raimondo said that the growth in smaller homes across the state was the highest quarterly increase in almost a decade.
“Clearly units and apartments are becoming increasingly popular as home buyers in regional towns and cities look to one and two bedroom homes that meet their needs.
“Sales of these homes were high for the quarter, with more than 500 unit and apartment sales across regional Victoria.”
Mr Raimondo said that the median house price of $322,000 was up from $318,000 in the final quarter of last year.
Across the state, the state’s north-east was a “hot spot” with Benalla growing 11.4 per cent in the quarter to a $235,000 median, and West Wodonga recording a 7 per cent growth to a median price of $283,500. In central Victoria, Creswick grew strongly, up by 8.9 per cent for the quarter to a median price of $288,500.
Bendigo was the standout of Victoria’s major regional cities, with house price growth of 1.6 per cent for the quarter to a median price of $325,000, with Ballarat close behind – with a rise of 1.4 per cent to a median price of $299,000.
In Melbourne, median house prices grew by 3.7 per cent to $652,500, while the median price of units and apartments in Melbourne increased by 1.1 per cent to $499,000.
Mr Raimondo said that while the residential property market has rebounded strongly in the past six months, it may moderate over the course of this year.
“Record low interest rates have been driving property price growth to date, but any movement in the interest rate or in employment levels is likely to see a moderation in this growth,” he said.