Melbourne welcomes house price growth
Residential property owners in Melbourne are likely to welcome recent growth in the real estate market, with the median dwelling price increasing across the capital.
According to figures from the Real Estate Institute of Victoria (REIV), the average house price surged 7.8 per cent to $555,000 in the December quarter - an indication that confidence is returning to the property market.
In comparison, the median price for units and apartments increased 4.2 per cent during the same period to $456,000.
REIV chief executive officer Enzo Raimondo attributed the latest results to improving economic conditions and increasing consumer sentiment.
"Underpinning this increase has been an estimated 16 per cent increase in sales transactions in Melbourne compared to the December quarter in 2011," Mr Raimondo commented.
"Overall transaction numbers remain low in historical terms and that may cause some ongoing fluctuations, but if improvements in confidence continue 2013 will see improved activity and an increase in sale values."
Areas that saw the biggest increase in buyer demand included the upmarket suburbs of Kew, Brighton East, Hawthorn, Glen Iris, Fitzroy North and Essendon.
Mr Raimondo said there was also healthy growth in Melbourne's more affordable postcodes, with the median dwelling prices increasing 4.5 per cent in the middle suburbs and 3.6 per cent in the outer areas.