Melbourne unit prices hit record $506,000 median: Domain
Staff reporterDecember 7, 2020
The median house price in Melbourne increased 13.9 per cent year-on-year.
But the rate of growth in the September quarter was the slowest for Melbourne since the September quarter 2014.
The median house price in Melbourne increased 1.3 per cent over the September quarter to $880,902, the Domain Chief Economist, Dr Andrew Wilson said.
Median unit prices in Melbourne grew significantly, increasing by 3.4 per cent over the September quarter to a new record high of $506,334.
"This means that year-on-year, unit prices have now increased by an incredible 11.4 per cent," Dr Wilson said.
"The results suggest that recent record levels of new apartment development have had a negligible impact on price, with demand continuing to absorb higher levels of supply."
While the median rental price for houses in Melbourne remained steady over the September quarter, sitting at $420 per week, rental prices are up 5 per cent over the last 12 months.
Domain quarterly stratified median house prices
| HOUSE | SEP 2017 | JUN 2017 | SEP 2016 | QOQ % | YOY % |
| Sydney | $1,167,516 | $1,190,677 | $1,079,309 | -1.9% | 8.2% |
| Melbourne | $880,902 | $869,598 | $773,399 | 1.3% | 13.9% |
| Brisbane | $551,840 | $552,874 | $531,767 | -0.2% | 3.8% |
| Adelaide | $519,517 | $520,846 | $498,971 | -0.3% | 4.1% |
| Perth | $554,095 | $561,391 | $567,314 | -1.3% | -2.3% |
| Canberra | $723,980 | $693,962 | $655,468 | 4.3% | 10.5% |
| Hobart | $409,592 | $392,170 | $356,916 | 4.4% | 14.8% |
| Darwin | $593,329 | $615,670 | $610,510 | -3.6% | -2.8% |
| National | $819,455 | $823,381 | $758,367 | -0.5% | 10.8% |
Similarly, median unit rents remained steady at $400 per week, up 5.3 per cent year-on-year.
“This period of growth marks the 20th consecutive quarter of house price growth for Melbourne.
"While house prices continue to grow at a steady rate, unit demand is soaring.
"The latest growth figures are further indication that demand is significantly ahead of supply," Dr Wilson said.
With policies in place to further restrict investors, it’s likely that rental prices will continue to rise, with fewer properties available, he added.