Unit prices surge across Melbourne

Unit prices in Melbourne have bounced back strongly, with some suburbs seeing quarterly growth as high as 25 per cent, according to the Real Estate Institute of Victoria (REIV).

REIV quarterly data showed that metropolitan unit values climbed 3.2 per cent to $630,500 while houses recorded a 1.1 per cent fall to $937,500, in the June quarter.

Units in the eastern suburb of Mount Waverley increased a staggering 25 per cent to $1.245 million over the quarter, while other high-end locations also saw strong growth, with Hampton units rising 20.1 per cent to $1.105 million and Brighton East climbing 14.9 per cent to $1,402,500.

Unit growth was seen across all areas in Melbourne, with prices in inner Melbourne rising 2.3 per cent to $594,000.

Middle ring units increased the most at 3.7 per cent to $716,000, while the outer suburbs saw a 2 per cent rise to $590,000.  

REIV President, Andrew Meehan said prices across Melbourne were stabilising despite macroeconomic and policy pressures, with attractive selling and buying opportunities in both metropolitan and regional locations.

Source: REIV

Despite unit values surging, prices are still trending lower for houses, with most of the growth focused on the middle ring locations.

The eastern suburb of Mulgrave returned to the $1 million median club, growing from $970,000 to $1.135 million, 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).

A number of high-profile suburbs saw prices decrease substantially, led by Kew and Malvern, which recorded quarterly declines in median house prices of more than nine per cent to $2.9 million and $2.775 million 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).

However, across regional Victoria, house prices managed to tick higher, recording an increase of 0.6 per cent to take the median price to $604,500, while units declined 2.6 per cent, to $411,500.

Demand was highest in Mansfield, which saw house prices increase  9.9 per cent to $830,000 in the June quarter. 

The median house price for Swan Hill rose to $472,500, bringing annual growth to 30.5 per cent – the highest across all regional locations.

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 million.  

In some regional towns, units recorded significant price increases, led by Moe which rose 16.8 per cent to $232,500. 

While Horsham was up 16.7 per cent to $385,000 and Bairnsdale 14.3 per cent to $368,500 last quarter.

Mr Meehan said he expects the turnaround in prices to continue.

“Middle Melbourne is particularly buoyant, transaction volumes remain strong and there are affordable buying opportunities in some of our state’s beloved coastal towns,” he said.

“We expect to see this stability continue into the second half of the year.”

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Rowan Crosby

Rowan Crosby is a senior journalist at Elite Agent specialising in finance and real estate.