Unit milestone is one in a million
THE median price of a unit or apartment in metropolitan Melbourne increased 4.2 per cent in the three months to December, from $437,500 at the end of September to $456,000.
In seasonally adjusted terms, the growth was 2.4 per cent, to $452,168.
The data confirms it was a strong quarter for higher density housing.
In a further sign the market for higher density dwellings is reaching maturity, one suburb recorded the first million-dollar median.
That was Abbotsford, following 20 sales valued at more than $1 million in one development.
The suburb’s unit median price will drop again in coming quarters, but it is still a sign of a healthy market.
It also highlights the premium people are willing to pay to live adjacent to the Yarra River.
This result will have driven the stronger results in the inner city more broadly. The median rose 3.2 per cent in seasonally adjusted terms, compared to 2.2 per cent in the middle suburbs and 1 per cent in Melbourne’s outer suburbs.
Elsewhere, higher density houses sold by private sale recorded stronger growth than those sold at auction.
The price of private-sale houses rose 2.2 per cent in seasonally adjusted terms, compared to a minor drop of 0.1 per cent among those sold at auction. The highest price growth was recorded in the inner-city suburb of Carlton, followed by South Yarra, Prahran, Croydon and Mentone.
Carlton has regular price fluctuations due to the two distinct markets there; the more affordable one with dwellings aimed at students, and the more expensive one.
In the December quarter, it is clear that sales in the more expensive segment dominated. Enzo Raimondo is Real Estate Institute of Victoria chief executive.