Volatile price fluctuations unlikely in regional Victorian property market

The REIV September quarter medians show that the residential housing market continues to remain stable, with a median house price in Melbourne of $530,000, compared with the revised June quarter median of $525,000. In regional Victoria the median house price was also stable, with a minor 0.7% increase to $307,000.

The non-metropolitan market continues to record more moderate growth over the medium term but is also not as likely to record the more volatile fluctuations prevalent in Melbourne.

The three main centres reflected this and recorded mixed results, with the median price of a house in Ballarat increasing by 1.8% to $285,000; in Bendigo it dropped by 2%  in the quarter to $301,000; and in Geelong there was a 6.1% reduction to $362,000.

The Surf Coast Shire is regional Victoria’s most expensive, with a median house price of $570,000. The Macedon Ranges is the second most expensive, with a median of $470,000.

Strong growth in prices was recorded in: Mildura, where the median increased by 7.6% to $225,000; in Bairnsdale, where it rose by 5.2% to $225,000; and in Traralgon, which rose by 9.3% to $282,000.

Over the quarter the rental vacancy rate dropped from 2.9% to 2%.

Of the three main regional centres the highest level of vacancies was recorded in Geelong, where the vacancy rate was 3.5% in September. In Bendigo it remained very tight, with 0.9% of rental homes vacant. Ballarat recorded 1.3%.

Median rents for houses rose slightly over the quarter from $290 per week in July to $295 per week in September.

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.