Melbourne breaks yet another house price record

Melbourne's buoyant property market has rocketed past another record – by breaking the $700,000 median price ceiling for the city for the first time ever.

REIV Chief Executive Officer Enzo Raimondo said the market continued to reach new levels during the current boom.

“The metro Melbourne median house price of $706,000 for the three months to 30 June was up from $671,000 in the March quarter,” he said.

“This represents a quarter-on-quarter increase of more than 5 per cent. The last time we had a quarterly increase this great was in late (December) 2014.”

“A number of factors have contributed to the strong result. A record number of auction sales in the first half of the year, low stock on market, high levels of migration and record low interest rates have been good news for sellers.”

Growth was widespread across Melbourne, with inner suburbs recording an increase of 6.2 per cent, and homes in middle and outer suburbs increasing 5 per cent.

He said that the number of million dollar suburbs across the city skyrocketed to 78 this quarter – 16 more than in the previous (March) quarter.

“These ranged from Abbotsford in the inner north, to Fairfield in the north-east, to Heidelberg in the outer east and Hughesdale in the south-east,” he said.

Regional Victoria also had price increases, with the median price of a home in regional Victoria also increasing in the June quarter, up 1.5 per cent to $346,000.

“The regional market has rebounded over March figures as more homebuyers take advantage of affordable properties on offer in regional Victoria.”