Bulletproof suburbs are still making incredible property price gains amid the pandemic.
House and unit median prices shot up as much as 55 per cent in the June quarter, with a number of suburbs rising above the million-dollar benchmark.
The Real Estate Institute of Victoria data shows metropolitan Melbourne’s median house sale price has dipped 3.5 per cent to $895,500 since April. Despite the coronavirus-driven downturn, prices are still 6.1 per cent higher than they were 12 months ago.
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Melbourne’s median prices have dipped, but a number of suburbs are proving bulletproof.
Real Estate Institute of Victoria president Leah Calnan said the results proved doom and gloom predictions about the property market were unlikely to come true.
“Agents from every part of Melbourne are continuously saying that sale prices have been consistent, and I think it shows the Victorian property market is strong and has shown great resilience,” Ms Calnan said.
“This should offer a lot more confidence for consumers everywhere, including people who have put their mortgages on hold and investors who have given rent reductions.”
REIV President Leah Calnan.
Nick Johnstone director Nick Johnstone said the June quarter had been busy in Bayside. Picture: Alex Coppel
In Melbourne’s southeast, Hampton and Elwood house prices skyrocketed 47.8 per cent and 31.1 per cent to hit medians of $2.52 million and $2.3 million respectively. Sandringham units also entered the million-dollar club after a huge 55.5 per cent price jump to $1.1 million in the quarter.
Nick Johnstone Real Estate director Nick Johnstone said a number of inquiries had come from those in “landlocked suburbs” during the pandemic.
20 Normandy Rd, Elwood set a suburb record in the past quarter.
It sold about $1.7 million beyond reserve.
“A lot of people are moving out of the inner city and trying to get closer to water, fresh air and a bit of space,” Mr Johnstone said.
“We’ve actually sold more properties in the past three months than we did at the same time last year.”
Big movers in the outer suburbs were Williams Landing (up 29.1 per cent to $832,500), Croydon North (20.6 per cent, $995,000) and Strathmore (17.5 per cent, $1.366 million).
The median price in Croydon North has shot up since April.
10 Susans Court, Croydon North sold for $748,000 in May.
Noel Jones Ringwood and Croydon director Warren Paas said families battling for properties in school zones were keeping the market afloat in the outer ring.
“These families need to upsize into particular suburbs, regardless of what’s happening with coronavirus,” Mr Paas said.
“We’ve seen very low volumes but the demand is still strong, which is keeping prices firm.”
Families are still selling to break into school zones. Picture: Nicki Connolly
First-home buyers are also making the most of low interest rates and government incentives. Picture: Wayne Taylor
He said first-home buyers were also taking advantage of cheap interest rates.
“Properties in their price range are selling very quickly. We’re getting 50 groups of people through a property and often selling it in five days,” he said.
The REIV also reported a drop in Melbourne’s unit and apartment market in the June quarter, with the citywide median shrinking 2.5 per cent to $621,000.
Apartment prices have slightly dipped in the past quarter. Picture: Wayne Taylor
Despite this, prices soared about 40 per cent in Hawthorn East, to a $937,500 median. Gains exceeded 20 per cent in Mordialloc, Highett, Carrum, North Melbourne and Kensington.
Regional Victoria notched quarterly median gains of 0.1 per cent to $420,000 for houses and an impressive 13.6 per cent to $339,000 for units.
The REIV data is based on sales in the June quarter. Suburbs needed to have at least 20 sales to be included.
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JUNE QUARTERLY MEDIANS:
Metropolitan Melbourne
Houses: $895,500, down 3.5% in the June quarter (up 6.1 per cent annually)
Units and apartments: $621,000, down 2.5% in the June quarter (up 6.4 per cent annually)
Regional Victoria
Houses: $420,000 median, up 0.1 per cent in June quarter (up 3.7 per cent annually)
Units and apartments: $339,000 median, up 13.6% per cent in June quarter (up 6.2 per cent annually)
MELBOURNE TOP 10 – HOUSES
HAMPTON $2,520,000 median, +47.8%
ELWOOD $2,300,000 +31.1%
WILLIAMS LANDING $832,500 +29.1%
CROYDON NORTH $995,000 +20.6%
CARLTON NORTH $1,590,000 +18.0%
STRATHMORE $1,366,000 +17.5%
MALVERN $2,500,000 +16.3%
WARRANDYTE $1,156,000 +15.6%
RINGWOOD NORTH $1,012,500 +14.9%
WHEELERS HILL $1,320,000 +13.7%
MELBOURNE TOP 10 — UNITS
SANDRINGHAM $1,100,000 median, +55.5%
HAWTHORN EAST $937,500, +39.3%
MORDIALLOC $745,750, +28.6%
HIGHETT $795,000, +21.9%
CARRUM $745,000, +21.1%
NORTH MELBOURNE $720,000, +20.9%
KENSINGTON $645,000 +20.0%
ABBOTSFORD $608,000 +19.2%
BLACKBURN $820,500 +18.9%
CAMBERWELL $1,005,750 +17.3%
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