It’s been described as a perfect storm by the Real Estate Institute of Victoria (REIV) who are saying that strong buyer demand, solid population growth, low stock and record low interest rates has led to the rapid median price growth in Melbourne.
According to the REIV, Melbourne Suburbs continuing to boom this December 2016 to March 2017 quarter include:
- Templestowe with a new median price of $1.552 million, up 17.6pc
- Mount Eliza with a new median price of $1.270 million, up 15.5pc
- Cranbourne North with a new median price of $518,000, up 14.9pc
- Kilsyth with a new median price of $699,000, up 14.7pc
- Mornington with a median price of $870,000, up 14.5pc
(Source REIV)
Just as the Sydney market is having buyers and investors look further afield, the same trend is also happening in Melbourne.
Regional cities like Ballarat with a median price of $320,000, 116 km from Melbourne, are proving much more affordable, especially if it’s possible to work from home for a few days a week.
Further afield, and beyond the commute areas like Wodonga (over three hours’ drive from Melbourne) the median price of $325,000 is similar, but with lower average wages in the town it’s still an affordability balancing act.
Just 90 km north of Melbourne, the regional city of Kyneton is undergoing a mini renaissance as a food and wine destination, with the median house price having risen over the past five years by 27 per cent to $474,500, but remains affordable compared with the Melbourne market.
The region is also benefitting from the Melbourne weekend commuters filling up the local restaurants, cafes and art studios on the weekend, and then Kyneton reverts back to a sleepy country town mid-week, so in some ways you are getting the best of both worlds if you can manage the commute.
