Melbourne’s median home price cracked the $1 million mark for the first time after a 9 per cent surge in value through the March quarter, Real Estate Institute of Victoria data has revealed.
The post-lockdown spike was the biggest price increase in metropolitan Melbourne since late 2009, following the global financial crisis, and brought the median house price in the city to $1,004,500.
REIV president Leah Calnan said there had been “unprecedented buyer interest across Victoria” and that the number of transactions during the quarter reached 35,000, the highest in six years.
Competition among upgraders for a better home in the family-friendly middle-ring suburbs drove up the median home price the most, by 7 per cent to $1,148,500.
In what came as a surprise to some, median unit prices across Melbourne increased 5 per cent to $672,500 during the quarter despite sharp double-digit rental decreases in parts of the city.
Demand for units in Melbourne’s far-flung outer suburbs jumped 8 per cent to a median of $590,000 over the 12 months to March 31.
Property prices in regional Victoria continued to grow thanks to increased urban migration, with a 4 per cent rise in median house prices to $510,500 through the quarter.