Dromana leads price growth, but Broadmeadows in catch up: REIV

Dromana leads price growth, but Broadmeadows in catch up: REIV
Dromana leads price growth, but Broadmeadows in catch up: REIV

Melbourne's median house price growth moderated in the September quarter, according to the REIV, as new policy initiatives increased sale volumes at the lower end of the market. 

Outer Melbourne dominated the top 20 growth suburbs this quarter as buyers looked for affordable entry points to the market. 

The seaside suburb of Dromana was the city’s best performing with its median house price increasing 15 per cent on June figures to $790,250. Sunbury, Ringwood East and Diamond Creek also experienced double-digit quarterly growth. 

Broadmeadows made the top 10 growth locations, with its $595,000 median price reflected in the brick veneer offering (above) which had redevelopment potential.

The latest REIV data shows the metropolitan Melbourne house price recorded its lowest increase in almost two years, up just 0.7 per in the September quarter to $817,000. 

The REIV Acting President Richard Simpson said the moderation was attributable to 44 per cent of all sales in the September quarter being below $600,000. 

“In the June quarter we saw vendors with houses around that $600,000 price point hold off selling in order to capitalise on greater competition from first homebuyers.” 

“These incentives have certainly worked with first homebuyers accounting for 18.3 per cent of all new home loans in August - the highest since September 2013.” 

“Despite the moderation, the market remains strong with the Melbourne median house price up a remarkable 14 per cent on the same period last year. We’re also seeing buyer demand continue to outstrip supply and a high level of vendor confidence.” 

“Given the strength of the market at present, buyers are looking for new growth areas which offer value without the need to compromise on amenities or infrastructure.” 

“Increased competition for homes further from the city is boosting the median house price in many of these areas, with all of the city’s most affordable suburbs experiencing significant annual growth.” 

Mr Simpson added that the city’s inner ring recorded the strongest growth of any region in the September quarter with its median house price increasing 1.5 per cent to just over $1.5 million. 

“Buyer demand within 10km of the CBD remains strong, which is being supported by a shortage of quality stock.” 

Apartment prices were also impacted by the Government’s first homebuyer initiatives with the citywide median falling for the first time in six quarters, down 2.5 per cent to $587,000. 

Meanwhile, house prices in regional Victoria increased for the third consecutive quarter, up 1.2 per cent to $385,000. 

TOP GROWTH SUBURBS – SEPTEMBER QUARTER (min 30 sales) 

Suburb                      Sep-17         Median Quarterly Change 

DROMANA                $790,250            15% 

SUNBURY                $518,000            14.5% 

Balwyn North      $2,105,000         13.8% 

RINGWOOD EAST    $1,030,000          13.2% 

LALOR                    $682,500              12.8% 

DIAMOND CREEK    $813,100              11.9% 

Bentleigh            $1,610,000          11.8% 

RICHMOND            $1,442,000          10.8% 

ELTHAM                  $945,000                9.8% 

BROADMEADOWS $595,000                9.7%

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Melbourne House Prices

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