Growing strength of Melbourne market highlights capital property boom
Owners of property in Melbourne looking into selling a house could be interested in securing a great return in the near future. The latest release from the Real Estate Institute of Victoria (REIV) highlighting the overarching strength of the real estate market across various suburbs in the Victorian capital city. This is especially true for owners of inner-Melbourne property, which has seen 87 suburbs reach a median price of over $1 million.
The recorded median price for property across these suburbs was measured at less than $1 million during the final quarter of 2013. However, by the end of March this value had climbed to $1,014,500 before breaking away and ending the June quarter at the fantastic result of $1,027,500. This growth reflects the rising strength of the Victorian market and could be an encouraging figure to consider when looking into the market.
REIV Chief Executive Officer Enzo Raimondo said the June quarter's median price result represented a record high during the city's biggest ever property boom.
"We've already seen the city's median price - which includes all properties sold across inner, middle and outer Melbourne - grow by more than $100,000 since the current strong cycle began in mid-2013," said Mr Raimondo in a July 14 statement.
"This growth, from a citywide median price of $547,500 in the June quarter last year, represents a greater median value increase than we've seen in recent strong cycles, including 2010 and 2007 - even back to 2001. Now we've seen the inner Melbourne median house price stretch well beyond the magic million dollar level, setting yet another benchmark."
Low interest rates and the rapidly growing population has been cited as reasons for these intense degrees of growth, as well as the populated auction market across the region. Mr Raimondo stated that there were almost 1,000 more auctions occurring than there were at this time last year - highlighting the rising buyer demand across the region as well as the increasing value of real estate across the region.
"There have been about 7,450 auctions in inner Melbourne this year – compared to just over 6,500 this time last year - with an average clearance rate of 74 per cent. That is well ahead of the Melbourne-wide average of 71 per cent," said Mr Raimondo.
Now could be a brilliant time to consider moving into the Melbourne real estate market. Regardless of whether you're looking to sell your home or purchase new residential property, taking advantage of the current landscape could offer a number of options for smart buyers over the coming months.