Melbourne’s median price has moderated following four successive quarters of growth, providing positive news for house hunters in 2016.
The median price fell marginally in the December quarter – down 0.1 per cent to a median house price of $718,000 – following solid growth of 4.5 per cent in September.
REIV Chief Executive Officer Enzo Raimondo said a high proportion of sales in Melbourne’s outer ring in the last quarter of 2015 had assisted in stabilising the housing market.
“Melbourne’s outer suburbs saw the strongest capital growth in the December quarter, up 2.9 per cent over September figures,” he said.
Suburbs in the city’s outer north east dominated the list of top growth suburbs with Warrandyte recording growth of more than 19 per cent - rejoining the million dollar club with a median house price of $1,030,000.
Greenvale and Sunshine were also strong performers in December, up more than 17 per cent over the previous quarter.
“Eight of the top 20 growth suburbs have a median house price below $600,000 and six of these are below $520,000. The median house price in Werribee increased more than $30,000 in the December quarter to $357,000," Mr Raimondo said.
“This level of growth in areas that are traditionally seen as affordable suburbs indicates buyer demand for space and affordability.
“Improved infrastructure in the city’s outer ring, including rail links and upgraded roads, are really boosting prices in these suburbs.”
Mr Raimondo said there had been a distinct shift away from more expensive Melbourne suburbs with buyers now looking at emerging growth areas.
“Demand for suburbs in Melbourne’s middle ring ebbed this quarter, as buyers sought value further from the city’s CBD.”
He said the city’s moderating housing market represented good news for those looking to get a foothold on the property ladder.
“While 2015 was a remarkable year for vendors, a moderating market favours buyers with more room for negotiation,” he said.
Meanwhile, suburbs in Melbourne’s inner ring continued to perform well at the end of 2015 with the median house price reaching $1,252,000 for the first time – a 1.3 per cent quarterly increase.
Widespread growth was also recorded for units and apartments, up 1.6 per cent across the city to a median of $537,500.