- Regional Victoria median house price is now $565,000
- Metropolitan Melbourne also grew strongly, including in middle Melbourne
- Listings rose last year and are on the rise - however the impact of Omicron is not yet fully understood, said REIV President
Regional Victoria recorded its largest annual increase since 2001 according to data recently released by the Real Estate Institute of Victoria (REIV).
The median house price grew by 27%, reaching the record-breaking level of $565,000 – more than the Perth median house price. While Geelong growth has been strong for some time, other major regional cities saw prices soar, such as Bendigo.
Units and apartments in regional Victoria also grew, recording 19.6% growth to reach a median price of $395,950.
“The data reflects the enduring attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions,” said Adam Docking, REIV President.
Highest growth in a decade
The significant gains weren’t just limited to regional Victoria.
With a median house price of over $1.125 million, Melbourne contains to maintain stead growth with a quarterly increase of 4.21% and 18.9% annually. This represents the highest annual growth rate in over a decade.
In middle Melbourne, the typical suburban belt for Melbournian families, a $1.23 million median price was recorded, representing 18.3% annual price growth.
Across outer Melbourne, house prices recorded their six consecutive quarter of price growth, with a median price of $815,000, 16.4% higher than a year ago.
Listings on the rise; impact of Omicron not yet known
Mr Docking said he expects the market to stabilise as listings are on the rise, giving buyers more options.
Auctions listings are on the rise with a 144% surge in the number of homes that went under the hammer in 2021 compared to 2020, according to REIV data.
This is reiterated by SQM Research data that shows a sharp rise in total auctions and higher clearance rates over the past year.
However, he noted the impact of the Omicron is not yet fully understood – the data released today was for December 2021, which was the month community transmission of the new variant began.
“At this stage it’s too early to tell. Virus safety is front-of-mind and Victorians are well-adjusted to the protocols they need to prepare for when attending inspections,” said Mr Docking.
“Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021.”
More spending on infrastructure investment is needed to support the growth in the regions, he also added.