Unit mile­stone is one in a mil­lion

Herald Sun - Property - - NEWS - ENZO RAI­MONDO

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.

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