New figures from the Australian Bureau of Statistics reveal that Melbourne’s population grew by more than 125,000 in the 12 months to June 2017 – a 2.7% increase – bringing our total population to 4.9 million. More than 70% of this growth was from migrants, from both overseas and interstate.
What does this mean for our property market? Put simply, a large flow of new households coming into the Melbourne market means more demand for housing. Our booming population is driving increasing competition for established homes and plenty of construction activity.
While there’s talk of the market easing, the REIV reports that Melbourne’s median house price rose 4.4% to $855k in the first three months of this year – an increase for the eighth consecutive quarter. At the same time, the median house price in suburbs between 10 and 20 kilometres from the CBD exceeded the million-dollar mark for the first time.
The clearance rate is holding steady in the mid-60s, and we’re seeing apartments and townhouses perform particularly well, driven mainly by first home buyers. The median price for apartments broke $600k in the first quarter, up 2.4% to $607k.
In our network, the team from Greg Hocking Holdsworth sold a knockdown 3-bedroom home in Albert Park for $3.85 – more than $650k above reserve – this past weekend.
If you’re interested to know what your property might be worth in the current market, please contact your local Greg Hocking office for a complimentary appraisal.