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Vic property values defy gloomy predictions

Despite the prolonged lockdown and a reduction in auctions, Victorian property values have continued to defy gloomy price predictions with regional homes even setting a new quarterly record.

Releasing new data on Sunday, Real Estate Institute of Victoria President Leah Calnan said values were holding firm after six months of the Coronavirus pandemic.

“The quarterly median prices for the September Quarter 2020 released by the Real Estate Institute of Victoria have highlighted remarkable resilience in the Victorian property market,” Ms Calnan said.

“The highlight of the September Quarter is Regional Victoria. Regional Houses set a new quarterly record at $442,500 recording incredible growth at 5.1 per cent for the quarter and 4.9 per cent over the last 12 months.”

The REIV data indicates regional units fell slightly to $327,000, down 3.1 per cent from the past quarter but are 8 per cent more valuable than they were 12 months ago.

“The varying levels of restrictions placed on Melbourne Metro and Regional Victoria over the last couple of months impacted transaction volumes as expected,” Ms Calnan said.

“While transaction numbers in Melbourne plummeted by 31 per cent compared to the June Quarter, transactions in Regional Victoria soared by 15 per cent.

Market restrictions meant fewer properties were listed for sale, keeping prices relatively stable over the quarter.

House values in Metropolitan Melbourne remained strong, falling by just 1.7 per cent during the September Quarter to a median price of $846,000 while recording a 7.4 per cent annual growth.

Units in Melbourne achieved a median price of $622,500, which is 0.2 per cent higher than the June Quarter and an annual increase of 5.4 per cent.

Sales by private treaty increased in popularity with units in Melbourne Metro even recording 0.8 per cent growth to a new record surpassing $600k for the first time.

These results come amongst a backdrop of incredible and ongoing change in the Victorian property market.

REIV President Leah Calnan said the Victorian property market has survived everything thrown at it in 2020.

“Despite six months of Covid-19, lockdowns and moratoriums, the Victorian Property Market continues to prosper with properties remaining more valuable than they were in 2019” Ms Calnan said.

“Our members have faced so many challenges in 2020, their work and efforts are evidenced in the September Quarter results.”

“REIV market statistics are based on results directly sourced from agents and government records and provide a true picture of Victorian real estate.”

 Sep-20 QuarterJun-20 QuarterQuarterly Change12 months to Sep-20 Quarter12 months to Sep-19 QuarterAnnual Change
Metropolitan Melbourne      
House$846,000$861,000-1.7%$875,000$815,0007.4%
Unit and Apartment$622,500$621,0000.2%$631,311$599,0005.4%
Regional Victoria      
House$442,500$421,0005.1%$430,000$410,0004.9%
Unit and Apartment$327,000$337,500-3.1%$317,500$294,0008.0%
       
 Sep-20 QuarterJun-20 QuarterQuarterly Change12 months to Sep-20 Quarter12 months to Sep-19 QuarterAnnual Change
Inner Melbourne      
House$1,486,000$1,484,0000.1%$1,510,000$1,405,0007.5%
Unit and Apartment$619,500$608,5001.8%$626,000$595,0005.2%
Middle Melbourne      
House$975,500$1,003,500-2.8%$1,020,000$930,0009.7%
Unit and Apartment$687,000$689,000-0.3%$703,000$660,0006.5%
Outer Melbourne      
House$679,500$673,5000.9%$685,000$650,0005.4%
Unit and Apartment$539,500$541,000-0.3%$545,000$505,0007.9%
       
 Sep-20 QuarterJun-20 QuarterQuarterly Change12 months to Sep-20 Quarter12 months to Sep-19 QuarterAnnual Change
Auctions      
House$979,000$1,004,000-2.5%$1,015,000$950,2506.8%
Unit and Apartment$688,500$697,000-1.2%$707,000$668,0005.8%
Private Sale      
House$813,500$815,500-0.2%$783,625$735,0006.6%
Unit and Apartment$601,000$596,5000.8%$590,000$549,0007.5%

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