Growth strong­est in mid­dle sub­urbs

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Herald Sun - Property - - FRONT PAGE - ENZO RAI­MONDO

THE me­dian price of a unit or apart­ment rose 2.8 per cent in the June quar­ter, from $452,000 to $464,500 in sea­son­ally ad­justed terms.

This was sim­i­lar to the change for houses over the quar­ter but was less over the year, with a 5.7 per cent rise com­pared with 8.4 per cent.

This medium-term dis­par­ity in price growth will in part be due to the in­creased sup­ply in the higher-den­sity mar­ket.

A re­view of the mar­ket from a broad ge­o­graphic per­spec­tive shows the strong­est growth in the mid­dle sub­urbs, where there was a 7.6 per cent in­crease in the past year com­pared with 4.8 per cent in the in­ner city and 1.7 per cent in the outer sub­urbs.

On a sub­ur­ban ba­sis the high­est growth in prices on a quar­terly ba­sis was in Hawthorn, Bentleigh East, Don­caster East, Carl­ton and El­stern­wick.

The most ex­pen­sive units were found in Malvern, where the me­dian price in the 12 months end­ing June was $987,500.

Beau­maris and Brighton were also above $800,000.

The most af­ford­able units were found in Dan­de­nong and Frankston, where the me­dian price was be­low $300,000.

A com­par­i­son of prices by sales method showed the me­dian price of houses sold by auc­tion rose a small 0.7 per cent, com­pared with a 0.6 per cent drop for units and apart­ments sold that way.

It is im­por­tant to un­der­stand that the unit and apart­ment clas­si­fi­ca­tion in­cludes not only flats and units but also townhouses.

This can have an im­pact on the me­dian price be­cause in some sub­urbs house-like prices are likely to be paid for well-con­structed and ap­pointed townhouses. Enzo Rai­mondo is chief ex­ec­u­tive of­fi­cer of the Real Es­tate In­sti­tute of Vic­to­ria

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