Fairfield joins group of suburbs with million dollar median

RP Data Melbourne BlogThe RP Data CoreLogic Home Value Index for September showed a minor easing in Melbourne dwelling values over the month and a moderate rise in the quarter.

Dwelling values in Melbourne dropped by 0.8 per cent in the month of September. This will be welcomed by those looking to buy this spring and summer. The traditional rise in supply is clearly helping to address buyer demand.

Over the quarter a 3.8 per cent rise has been recorded in house values and 7.2 per cent this year. Growth in values was concentrated in the first two months of the quarter.

Analysis of property values by suburb over the quarter showed that the strongest growth in house values were in the inner east.

Armadale saw a 25.4 per cent rise over the last year and similar growth was recorded in nearby Malvern East, Glen Iris and Camberwell. It is often the case that in an improving market the most expensive segment records the strongest increase in values.

It was also interesting to note that Fairfield joined neighbouring suburb, Alphington, as a suburb with a median house value of in excess of a million dollars. Buyers who can’t afford Mont Albert or Balwyn are gravitating north of the Yarra.

Unit values were stable with a 0.1 per cent rise in the month but they still showed very low growth this year with a 2.6 per cent rise in 2014 so far.

Over 1,000 more homes were sold at auction this quarter than in the September quarter last year. The clearance rate was stable, 71.6 per cent compared to 71.4 per cent last year but there was a 17.6 per cent rise in auctions and 18 per cent rise in homes sold. Similar to the growth in values over the last year, this reflects an improving market and increased use of auctions.

See full list of HOUSE results 

See full list of UNIT results

 

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.

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