2017 has been another bumper year for the Melbourne real estate market. Indeed, REIV President, Richard Simpson, suggests that 2017 has likely been the strongest property market on record.
Double-digit price growth (14 percent) has taken our median house price to $881k – a figure that has increased every quarter now since 2012. Forty four suburbs joined the million dollar club in 2017, with one in three Melbourne suburbs (154 in total) now boasting a median house price of $1 million plus.
Proximity to the CBD continues to be a key driver of strong price growth with 90% of suburbs within 10km of the city making the million-dollar list. To put this in perspective, we had just 17 million-dollar suburbs in 2007.
2017 has also seen middle and outer suburbs perform strongly, with a marked move to auction as the preferred method of sale in areas where they were once uncommon. The REIV reports 24% growth in the number of auctions held in the outer ring compared with 2016, with many of these suburbs achieving an annual clearance rate above 80%.
Against this backdrop, I’m feeling energised about 2018. Most experts are predicting continued price growth (though at a slower rate), supported by factors including strong population growth, record low interest rates and first home buyer incentives.
Please get it touch if you’d like an estimate of your property’s value before the end of the year.