New REIV data for the three months ended 30 June 2018 reveals that median house price performance in regional Victoria outstripped that in Melbourne.
While median house prices in the state’s regions rose 4.0 per cent to $419,500, they dipped by 0.6 per cent to $840,000 in the Melbourne metro area.
The result in Melbourne was due to a fall of 0.8 per cent in median prices achieved at auction, defying the median lift of 2.3 per cent in private sales of houses.
This overall correction was apparent in Inner Melbourne, where the overall median house price dropped 4.9 per cent to $1,459,000 and in Middle Melbourne, which fell 5.4 per cent to $974,500.
The Outer Melbourne house market performed more strongly, with the median edging up by 0.5 per cent to $681,000.
Unit and apartment median price in Regional Victoria increased by 3.7 per cent to $304,500, while the Metro median was up by 0.5 per cent to $604,000, indicating a continued interest in smaller properties.
REIV President Richard Simpson said that despite lower auction clearance rates and fewer overall sales, there were some sectors of the market that were still performing well.
“2017 was a bumper year and while the trendline has flattened, despite the fall in median house prices in the June quarter, median prices are still up this calendar year for both houses and units, in Melbourne and in the regions. Melbourne’s outer perimeter continues to grow. Small increases in the June quarter mean that the median prices for both houses and units have risen over 10.5 per cent from a year ago.”