December Quarter Shows Drop In Median Prices And Need For Rate Cut

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30th January 2009, 11:46am - Views: 360

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Media Release 

The Real Estate Institute of Victoria Ltd

Telephone (03) 9205 6666

ABN 81 004 210 897


Friday 30 January 2009

December quarter shows drop in median prices and need for rate cut

The release of the REIV residential median property prices for the December 2008 quarter show that

the median price dropped by 0.9 per cent, from the revised $430,000 in the September 2008 quarter

to $426,000 in the December 2008 quarter.

REIV CEO, Enzo Raimondo, said “the impact of current economic conditions has had a softer effect

on prices than expected over the December 2008 quarter. The effect on the number of transactions,

however, has been more noticeable, with a drop of approximately 25 per cent for the year.

“The interest rate reductions late last year, together with the first home owners incentives, have helped

to soften the effect on prices.

“The result confirms that continued action by the Federal Government and Reserve Bank is necessary

to bolster the local economy.

“As expected, property prices across the board reduced in 2008 – 3 per cent in the lower price bracket

to 12.2 per cent in the higher price brackets, with a few exceptions. Suburbs that defied the trend were

those mostly in the $500,000 and below price brackets, in suburbs such as Craigieburn, Deer Park,

Ferntree Gully, Boronia, St Albans and Thomastown.

“In contrast, major reductions in the median occurred in the higher end of the market this quarter, in

suburbs such as Brighton (-4.7%), Camberwell (-8.2%), Balwyn (-21.6%) and Kew (-12%). These

suburbs also saw considerable price growth during the 2007 calendar year.

“Demand for more affordable property has also helped property values in some regional areas, such

as Bendigo and Geelong, while Ballarat recorded a minor drop in the median of 2.3 per cent.

“The predicted further rate cut on Tuesday will be welcomed and should assist both residential

property buyers and investors.

“The outlook for 2009 will depend on the continuing impact of current economic conditions and any

further incentives provided by State and Federal Governments,” Mr Raimondo concluded.

House Prices

Dec Q 2008

% chg Sep-08 to


Sept Q 2008

% chg Dec-07 to


Dec Q 2007







Unit/Apartment Prices

Dec Q 2008

% chg Sep-08 to


Sept Q 2008

% chg Dec-07 to


Dec Q 2007








Chief Executive Officer: Enzo Raimondo, 9205 6666 or 0412 252 752.

CPR Communications and Public Relations, Robert Larocca, 9654 4799 or 0409 198 350

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