Victorian property market not all one-way

Demand for regional Victorian property continued in 2022 with house prices rising eight per cent.

Figures from the Real Estate Institute of Victoria’s (REIV) Quarterly Median Report showed house prices in regional areas grew 8 per cent last year to a median of $610,000, while the annual median for units and apartments climbed 6.5 per cent to $425,000.

Metropolitan Melbourne saw a 1.6 per cent fall in the median house price for the quarter and 3.3 per cent annually.

Still, the annual median price remains above the $1 million mark, with some markets across the outer ring of the city still performing well.

House prices in outer Melbourne grew 1.8 per cent to $830,000 over the 12-month period (up $14,500), with the fledgling western suburb of Cobblebank recording one of the highest annual growths across the state, with an 18.5 per cent increase in the median house price to $635,000.

Other suburbs in the west that recorded outstanding growth were Harkness, up 17.8 per cent to $625,000, Melton (up 11.5 per cent to $470,000) and Weir Views (up 10.8 per cent to $537,000).

REIV President Andrew Meehan said the December data demonstrated there was still plenty of opportunity in the market.

“The drop we’ve seen in the median prices in Metro Melbourne must be seen in the context of the rapid price growth Victoria has recorded over the past two years”, Mr Meehan said.

“Property prices still remain higher than they were in December 2020 – the post-COVID real estate boom has placed Victorian property in a stronger position than ever before, a trend we continue to see across numerous suburbs in metro Melbourne and our regional areas.

“Now, as we enter the new year and the immigration levels return, we will no doubt see continuous demand in the market as Melbourne’s population grows and investors see strong potential for growth in our state.”

In the December quarter, the standout regional suburbs for quarterly growth included Kyneton, which added $100,000 to its median house price (topping out at $1.04 million) and the historic town of Stawell, which grew 8.7 per cent for the quarter and 21 per cent annually (to $375,000).

The most affordable areas for hopeful house-hunters looking to lock down a unit in the December quarter were Carlton, down 30.7 per cent to $297,250, Dandenong (down 17.0 per cent to $357,000) and St Kilda East (down 12.2 per cent to $511,600).

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Kylie Dulhunty

Kylie Dulhunty is the Deputy Editor at Elite Agent.

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