New data from the REIV shows that the median house price in Melbourne’s middle ring (suburbs between 10 and 20 kilometres from the CBD) broke the million-dollar mark for the first time during the first quarter of 2018 – an increase of 4.2%. The median for apartments in the same zone was $607k – up 2.4% compared with the previous quarter.
While clearance rates are down on this time last year, they continue to hover around the mid-60s. We’re seeing good levels of buyer activity across our network, but things have settled down to some extent following a remarkable year in 2017.
My observation is that there’s more variability across the market – from suburb to suburb and area to area – than we’ve seen in a while. Premium suburbs always perform well, but there have been some surprising postcodes posting strong results in recent weeks.
The 2018-19 budget was released earlier this month. Aside from the stamp duty concessions introduced for first home buyers last year, there weren’t any real benefits for buyers or investors.
Speaking of first home buyers, we’re continuing to see strong demand for properties below the $600k mark – from apartments and townhouses in the inner and middle rings to established homes and new builds further from the CBD.