Melbourne's property prices look set for a new record high: Domain

Throughout 2019, Melbourne's house price have almost recovered what was lost during the slump, according to the latest quarterly report from Domain.

Houses have seen a 5% increase in value with median prices reaching $901,951. Units have seen even stronger growth of 5.6% with median values hovering around $549,701.

Though the year sprung off with deteriorating prices, the rest of 2019 saw growth, with the the final quarter providing the strongest quarterly gain in three years and the largest annual jump in two years.

With just under $6,800 left to regain, it appears that house prices are set for a new record high next quarter. 

However, this recovery remains uneven across the Melbourne as there are substantial price rises concentrated at the upper-end, led by the city, the inner east and inner south. 

Units in Melbourne continue to outperform houses as unit prices produced the strongest quarterly growth since mid-2009, and the biggest annual surge since mid-2010.

Unit prices are currently at a new record high that is 7.5 per cent higher than the previous peak in early 2018. 

Melbourne and Hobart units were the only cities to record a new high. Meanwhile, other cities remain below previous peaks in unit prices. 

Melbourne is the second most unaffordable city for units, with its price being higher than the median house prices in Adelaide, Perth, Darwin and Hobart.