House prices in the state of Victoria have hit new heights as the state’s property market bounces back from its recent lockdown nightmare.
New figures released by the Real Estate Institute of Victoria (REIV) reveal that the average Melbourne house price jumped by almost 10 per cent during the last quarter, to a record high $941,000.
Regional Victoria also saw a 9.2 per cent increase in median house values as the state recorded its largest quarterly rise in over 20 years.
REIV President Leah Calnan said the remarkable figures are a result of COVID restrictions easing and that it underlines the strength of Victoria’s property market.
“Throughout the July and September quarters, we received constant reports of low listings and activity. Once restrictions across the state eased, demand and buyer competition skyrocketed,” she says.
“Certainly low interest rates and government incentives including stamp duty concessions and first homebuyers grants added to buyer appetite for the December quarter, while volatility and uncertainty in the Australian equity market have secured property as a preferred investment option for Victorians.”
House prices in Melbourne’s middle-ring saw an 8 per cent increase in median value on the previous quarter after hitting an average of $1,065,500, while regional Victoria recorded its highest quarterly growth since 2003 as many Victorians decided to escape the big smoke.
Belle Property’s Will Walton says that regional Victoria’s market has performed well due to many viewing the state’s countryside as a safe haven.
“Homeowners are either investing in their metro residence or looking for easy tree change locations like Tretham, Glenlyon or Daylesford,” he says.
“People want to feel safe and secure in wider open spaces that are a better fit for families if parents are working from home.
“With interest rates at an all-time low, now is the time to take up such opportunities, especially if it means family safety and security.“