Media Release
The Real Estate Institute of Victoria Ltd
Telephone (03) 9205 6666
ABN 81 004 210 897
EMBARGOED TILL 12.01am Saturday 24 October 2009
Strong quarter of growth for Melbourne home prices
The REIV has released its September Quarter Property Update which shows the median price of a
house in Melbourne reached $480,000, an increase of 6.7 per cent since the June quarter.
REIV CEO, Enzo Raimondo said that improved confidence in the Victorian economy combined with
ongoing population increases has resulted in a new record quarterly median price.
“The recovery in the property market is widespread with record demand in the cities most prestigious
suburbs as well as its most affordable ones.
“Individual monthly results also show ongoing and sustained increases over the quarter which
indicates demand will continue to push prices up through October, November and December.
“The improved confidence in the economy has revealed the underlying issue; a lack of supply, both for
purchasers and renters. Unless there is a sustained increase in supply the REIV expects further
pressure on prices.
“Surrey Hills has recorded the largest increase in its median this quarter, increasing by 24.6 per cent
from $905,000 to $1,127,500. The median price in Surry Hills fell below a million dollars due to the
global financial crisis in 2008 but like many other suburbs it has now reached a new high.
“Pascoe Vale also recorded very strong increase in demand, its median rose by 23.7 per cent from
$485,000 to $600,000. Strong demand for traditional detached homes in similar middle ring suburbs
such as Thornbury, Highett, Doncaster East, Nunawading and Bentleigh East was also recorded.
“This result comes as no surprise, in the auction market the REIV has recorded 23 weekends in a row
with a clearance rate in excess of 80 per cent. This has been a very good period for vendors but is not
sustainable.
“The median price for a unit or apartment has increased by 5.1 per cent in the quarter from $390,000
to $410,000 – the first time it has exceeded $400,000.
“Key regional centers, Greater Geelong, the City of Ballarat and Greater Bendigo have all recorded
increases over the last 12 months.
“The market has clearly recovered from very challenging times over the last 12 months however the
challenge of ensuring adequate supply of homes for owner occupiers and renters will dominate the
market in the next 12 months,” Mr Raimondo said.
REIV Metro Melbourne Median Prices
Sept Qtr
2009
% chg
Jun-09 to
Sep-09
Jun Qtr
2009
% chg Sep-08 to
Sep-09
Sept Qtr
2008
Median - House
$480,000
6.7%
$450,000
6.7%
$450,000
Median - Unit/Apartment
$410,000
5.1%
$390,000
10.5%
$371,000
MEDIA COMMENT:
Robert Larocca, 0409 198 350
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