Private treaty apartment market cheaper than redhot Victorian auction market: REIV

The latest REIV data calculated there was far less price escalation in the private treaty market than the red hot auction market. Apartments sold at auctions during 2021 were up 9.6% to a $772,500 median price across Victoria. But private treaty sale prices went up just 1% to $606,000, according to data from Real Estate Institute of Victoria’s December quarter report. The median apartment price in regional Victoria saw 19.6 per cent annual price growth in 2021. It took the median apartment price to $395,950. The median house price in regional Victoria has was up 27 per cent reaching a record breaking $565,000 over the year. “The data reflects the enduring attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions," REIV President Adam Docking said. Metropolitan Melbourne unit prices jumped 7.1% to $680,000, while houses across the city rose 18.9% to $1,125,000. The data shows apartments in outer Melbourne, achieved a $615,000 median price with an annual increase of 11.3 per cent. Middle Melbourne apartments remain the pricier at $765,000 up 8.5% last year. Apartments in inner Melbourne have experienced 4.8% price growth to a median price of $655,000. Docking said he expects the market will soon begin to stabilise as some of the listing volume issues are addressed and buyers have more offerings. But he suggested the impact, if any, of the Omicron surge on the real estate market is yet to be fully understood. “Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021.”