One billion dollars a week on Melbourne property in 2014

Key points

  • Over one billion dollars a week was spent of residential real estate last year
  • Brighton recorded the highest spend, $842m
  • Glen Waverley recorded a $233m rise
  • In 2014 a total of $53.7b, over one billion dollars a week, was spent on Melbourne residential real estate.

In 2014 a total of $53.7b, over one billion dollars a day, was spent on Melbourne residential real estate.

This is an increase from the $52.9b in 2013 and $43.8b in 2012, reflecting the overall growth in the market over the last few years. It is worth noting that last year was still slightly below the all time record of $54b in 2010.

The citywide changes are also reflected at a suburban level.

Whilst the top 10 Melbourne suburbs ranked by the total spent on residential real estate did not show a lot of change between 2013 and 2014, the amount spent did.

Highest spend by suburb 2014

Top of the list was Brighton. Last year an average of $2.3m was spent every day  in Brighton property purchases and $378,213 more every day than the previous year.

This pushed the entire value of sales from $700m to $841m. Brighton may have a higher value of sales than any other suburb, however the increase was dwarfed by the rises recorded in Melbourne, Glen Waverley, Kew and Toorak.

In 2013 for instance, $1.49m was spent on units in the suburb of Melbourne and this rose by half a million dollars a day to $2.05m. This rise is partly due to the increased prices being paid and partly the increased construction.

Glen Waverley recorded the most significant difference.. Over the course of the year $233m more was spent on houses which in turn pushed the median house price up from $807,000 to $970,000. Neighbouring Mount Waverley also saw a significant rise of $311,747 on a daily basis.

Robert Larocca
CoreLogic 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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3 Responses to One billion dollars a week on Melbourne property in 2014

  1. Rene Thalmann March 25, 2015 at 4:42 pm #

    Could you pls explain how $53.7billion equates to over $1billion a year?

  2. James March 27, 2015 at 8:57 am #

    Not to be confused with the overall increase in residential property value in 2014 which Australia wide amounted to nearly half a trillion dollars (extrapolated from quarterly results below):

    http://www.abs.gov.au/ausstats/abs@.nsf/mf/6416.0

    “The total value of residential dwellings in Australia was $5,399,951.8m at the end of December quarter 2014, rising $124,445m over the quarter.”

    If most of this is due to speculative activity, then we have a problem – most of the rise affects land values. First home buyers are pushed further and further out where there are no jobs, costs to productive businesses increase, and government does not get any benefit without a broad based land tax.

    Will Joe Hockey consider that in tax reform? Not likely – how do most of the elite in this country amass (no, not earn) their wealth, hmmm?

  3. john June 4, 2015 at 8:50 am #

    What this shows is that due to a high volume of available property sold in Glen Waverley compared to eg Toorak, is something which you should not use as a comparison between these suburbs as their figures are derived from an unbalanced stock.

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