It’s a record year of Vic­to­rian real es­tate records

The Riverine Herald - Local Real Estate - - NEWS -

FOL­LOW­ING a record break­ing year in 2015, the state’s prop­erty mar­ket was closely watched by all in 2016.

While the res­i­den­tial prop­erty sec­tor slowed in most states in 2016, Vic­to­ria’s mar­ket de­fied the trend and re­mained solid, gain­ing strength through­out the year.

Though trans­ac­tion vol­umes have been be­low 2015 lev­els, the me­dian house price has con­tin­ued to in­crease this year with clear­ance rates at their high­est since 2009.

Echuca proved a re­gional trend set­ter, all but halv­ing the num­ber of days prop­er­ties are on the mar­ket be­fore sell­ing to just 47.5.

Lo­cal agents have re­ported de­mand is fast out­strip­ping sup­ply and their big­gest chal­lenge is find­ing list­ings, not buy­ers.

As the year draws to a close, it is timely to re­view the mar­ket in 2016 and the out­look for Vic­to­ria in 2017.

Trans­ac­tions and Auc­tion Vol­umes

Trans­ac­tion vol­umes in Vic­to­ria have been lower than last year with an es­ti­mated 121,600 sales in the year to Novem­ber 30.

In the year to Novem­ber 30, around 35,000 auc­tions have been held with over 26,000 homes sell­ing un­der the ham­mer.

About 32,700 of those auc­tions were held in Mel­bourne, com­pared to 2400 in re­gional Vic­to­ria where pri­vate sales are more pop­u­lar.

This year has been char­ac­terised by lower trans­ac­tion vol­umes, higher me­dian prices and higher clear­ance rates mak­ing it an ideal sell­ers mar­ket.

The year is set to end strongly for auc­tions with De­cem­ber shap­ing up to chal­lenge the all-time record num­ber of auc­tions for the month and, given the re­cent clear­ance rate, is cer­tainly likely to ex­ceed the auc­tion sales record set last year (2459 auc­tion sales).

Me­dian price Growth

Sig­nif­i­cant house price growth has been recorded in metropoli­tan Mel­bourne through­out 2016 with the me­dian reach­ing the $740,000 mark for the first time ever in the Septem­ber quar­ter.

House prices have also in­creased in re­gional Vic­to­ria over the year, although at a more mod­er­ate pace, with the me­dian house price hit­ting $348,500 in the three months to Septem­ber 30.

This was up from $347,500 in the first quar­ter of 2016.

Growth has been wide­spread across the city, with price in­creases recorded in all three re­gions — in­ner, mid­dle and outer.

The Septem­ber quar­ter saw the city’s me­dian house price rise 3.2 per cent to a record high $740,000.

Mel­bourne’s in­ner and mid­dle sub­urbs were the main growth driv­ers in the Septem­ber quar­ter with house prices in these re­gions up 4.2 and 3.5 per cent re­spec­tively.

Mil­lion dol­lar sub­urbs

Buyer de­mand in tra­di­tional mil­lion dol­lar sub­urbs has pushed up the me­dian house price in neigh­bour­ing ar­eas.

As a re­sult of the rip­ple ef­fect, more of these sub­urbs have joined the mil­lion-dol­lar club this year.

There were 77 sub­urbs val­ued at $1 mil­lion or more in the March quar­ter, and this has since in­creased to 104 in the Septem­ber quar­ter.

There are in fact now 13 sub­urbs with a me­dian price of $2 mil­lion of more, with Toorak re­main­ing Mel­bourne’s most ex­pen­sive sub­urb with a me­dian house price of $4 mil­lion.

This is fol­lowed by Malvern and Can­ter­bury with me­dian house prices of $2,961,000 and $2,388,000 re­spec­tively.

Toorak also led the list of top end sales this year, with 43 homes sell­ing at or above $5 mil­lion, well ahead of Brighton, Kew and South Yarra.

Look­ing ahead

While list­ings re­main low and clear­ance rates high, the REIV ex­pects me­dian house prices to in­crease once again in the De­cem­ber quar­ter fol­lowed by the tra­di­tional slow­ing in Jan­uary be­fore pick­ing up again by March.

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