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Melbourne property prices show moderate growth

The REIV June quarter median prices show moderate growth in the Melbourne housing market over
the last quarter.
REIV CEO Enzo Raimondo said the median price for a detached home in Melbourne has recovered
much of the ground lost in the March quarter, increasing by 4.9 per cent from $430,000 to $451,000.
“The moderate increase in the median price this quarter confirms that the Melbourne housing market
is stable.
“Each week around 1500 people move to Melbourne, ensuring strong demand for property to buy and
rent right across the city. This has contributed to the Melbourne residential property market performing
better than other capital cities in these changing economic conditions.
“There is also no doubt that the market is calmer and more sustainable than it was this time last year,
providing more opportunities for buyers.
“The more sustainable position of the market is highlighted when comparing growth rates over the last
year. In the June 2007 quarter South Yarra was the highest growth suburb with an increase in the
median of 60 per cent, compared to the June 2008 quarter with Glen Iris the highest growth suburb
with an increase of 12 per cent.
“Home buyers in Melbourne are still looking for value, underscored by the fact that increases in values
were predominantly in suburbs with prices around or below the Melbourne median; suburbs such as
Hillside ($330,000), Glenroy ($381,000), Coburg ($538,500), Cheltenham ($575,000), Mount Martha
($525,000), Mulgrave ($473,075) and Wheelers Hill ($566,888).
“The median price for units and apartments has continued to show less volatility than detached
homes. The median price for a unit or apartment dropped less than detached home in the March
quarter and in the June quarter remained steady with a median of $370,000.
“Over the longer term the two housing types, houses and units and apartments have shown near
identical increases in value with the median price of a house increasing by 27 per cent over 5 years
compared to 28.9 per cent for units.
“Some volatility remains in the market and this year has seen a reduction in transactions compared to
the same time last year. However if moderate economic growth continues and interest rates remain
stable then the local housing market will continue to perform well,” Mr Raimondo concluded.
June 08 Melbourne Median Prices
Jun Qtr
% chg Mar
07 Mar Qtr
% chg Jun
07 Jun Qtr
2008 to Jun 08 2007 to Jun 08 2007
Detached property median $451,000 4.9% $430,000 10.8% $407,000
Units and apartments median $370,075 0.0% $370,000 5.8% $349,900
Suburb by suburb details and video cast available for download from www.reiv.com.au from
12.01am 26th July
MEDIA COMMENT:
Chief Executive Officer: Enzo Raimondo, 9205 6666 or 0412 252 752.
CPR Communications and Public Relations, Robert Larocca, 9654 4799 or 0409 198 350

Duration : 0:4:16

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