Melbourne housing values rise over 2013

In the December quarter last year the median value of a house in Melbourne rose by 2.6 per cent to $542,053. Over the last year the increase was 10.7 per cent from $489,696.

A similar increase was recorded for units. The median value of a unit rose by 2.3 per cent to $442,043. Over the last year the increase was 9.8 per cent from $402,440.

This confirms that 2013 was a good year for real estate in Melbourne. Values rose as demand increased and more people bought and sold residential real estate.

The market remains below its previous nominal peak underscoring that we are in a recovery phase.

In the houses market the strongest growth in values over the year was recorded in Kew East, Balwyn North, Caulfield, Maribyrnong and Balwyn. Value growth was also recorded in the more affordable sub $500,000 segment with the highest growth occurring in Watsonia where values rose by 12.3 per cent and above the city- wide rise.

Change in values between September 13 Q and December 13 Q - Houses

The strongest growth over the quarter was concentrated in the more affordable suburbs of Hastings, Knoxfield, Mitcham, Keilor East along with Camberwell. This suggests that the substantial rise in auction volumes (the more prevalent sales method in the inner city) acted to moderate price growth.

Change in values between September 13 Q and December 13 Q - Houses

In the unit market the highest growth over the year was recorded in Malvern East, Balwyn, Northcote, Bentleigh East and Balwyn North.

Change in values between December 12 Q and December 13 Q - Units

Taking a broader view of the Melbourne market the data shows that inner eastern suburbs of Balwyn and Balwyn North recorded the strongest demand across all property types.

Looking forward to 2014, it is clear that the market is primed to move from a recovery to growth phase whilst economic conditions, consumer confidence and monetary policy remain favourable.

Robert Larocca
RP Data Victoria Housing Market Specialist

About Robert Larocca

Robert Larocca has built a profile over the past eight years as an expert on the Victorian residential property market. He worked for the REIV both directly and as a consultant over 8 years acting as a spokesperson, managing its research department and public policy. He has been a media and government relations consultant and spent a decade working across the three levels of government including as a Councillor and Mayor in the City of Moreland. He has well developed leadership skills in the not for profit sector and has been the Chairperson of CERES Community Environment Park for 9 years.

Connect with CoreLogic

Enter your email address to subscribe to our e-newsletter, and have new posts delivered via email. You can also connect with CoreLogic on social media.

One Response to Melbourne housing values rise over 2013

  1. Colin Rounds March 6, 2014 at 8:20 pm #

    Robert Larocca,

    You really inspire readers like us, this blog is for specific person who are related to property management and real estate firm. Keep sharing informative information like this with us.

Leave a Reply

Notify me of followup comments via e-mail. You can also subscribe without commenting.