Melbourne house prices up 5.4% in June quarter: REIA

Melbourne house prices have mounted a strong comeback in the June quarter, rising 5.4% to a median of $590,000, according to the latest Real Estate Institute Market Facts report. 

The gain reverses a 6% drop over the March quarter, when the Melbourne median price fell to $565,000. 

Acting REIA president Pamela Bennett called Melbourne market the “standout” performer reflecting “a very stable and strong market and resilient house sales”. 

Sydney house prices remained virtually unchanged, up 0.1%, but remains head and shoulders the most expensive in the country at a median value of just over $644,000. 

Median house prices decreased in four of the eight capital cities over the quarter. The largest decrease was evident in Darwin, where the median house price declined 6.4% to $515,000.

The median house price in Perth decreased 3.1% to $470,000 over the June quarter.

Nationally, median house prices increased by 1.2% to $541,188, with other dwellings (units) up 0.5% $430,230. These are the largest increases recorded since the September quarter of 2010. 

The improved performance of the property market over the June quarter was accompanied by an increase in the value of owner occupier and investment loans; both recorded a significant recovery compared to the previous quarter, increasing 12.8% and 19.3% respectively.

“There are signs of some slowing in the pace of global economic growth which may pose some challenges to policy makers to maintain stable economic performance. Maintaining cash rates at the current level will provide respite to mortgage holders and stable economic growth,” Bennett says.

There were also strong gains in Hobart, where the median price increased by 2.4% to $370,000 following a 5.6% fall in the March quarter. 

On the rental front, rents for three-bedroom houses remained unchanged in most capital cities. Hobart and Darwin were the only capital cities where median rents for three-bedroom houses recorded a change declining 8.7% and 2.7% respectively. 

Darwin maintains the highest rent for a three-bedroom house, at $540 per week, while Adelaide recorded the lowest rent for this type of dwelling, at $320 per week.

Sydney recorded the highest weekly rent for two-bedroom other dwellings, while Adelaide and Hobart recorded the lowest weekly rents.