The REIV’s Metropolitan Melbourne Median Prices for the June Quarter show that housing prices have exceeded expectations.

REIV CEO Enzo Raimondo said that in the June Quarter the median Melbourne house price has risen 5 per cent from $357,000 to $375,000. Over the last twelve months this has resulted in a 4.2 per cent increase.

Mr. Raimondo said that “the local market has performed consistently resulting in better than expected returns for owner occupiers and investors.

“The annual increase is in line with the housing component in the inflation figures released by the ABS confirming that the housing market is steadily appreciating.

“It is important to note the detail of the market, as it shows that properties priced at the upper end of the market are performing more strongly than the lower price brackets.

Melbourne apartment values continued their steady growth with an increase in the median of 2.9 per cent over the quarter and 5 per cent over the last twelve months.

Regional Victoria is also showing growth in line with Melbourne’s, The Ballarat median has increased by 11.1 per cent over the twelve months to June, Bendigo’s median has risen by 6.4 per cent and Geelong has seen median values increase by 5 per cent.

Toorak continues to be the most expensive Melbourne suburb, with Broadmeadows now the most affordable.

The strength of the upper end of the market is also shown by the fact that in the June quarter there are four suburbs over $1 million and seven over $900,000, whereas in the March quarter there were just two suburbs with median values over $1 million and three over $900,000.

“Melbourne’s west, specifically Altona, Maidstone, Newport, Taylors Lakes and Williamstown have featured in the top 20 growth suburbs in the last quarter, all growing by more than 9 per cent, confirming strong buyer activity in these areas.

“Overall Melbourne home owners and investors should be pleased with this quarter’s results, however affordability remains a concern for first home buyers, particularly given speculation of an imminent increase in interest rates.

The REIV’s Metropolitan Melbourne Median Prices for the June Quarter are calculated on approximately 14,000 residential property transactions.