Price records set in Victoria's top growth suburbs

Property price records are tumbling across Victoria, with more than 170 suburbs in Melbourne laying claim to a median house price of $1 million or more, while several key regional locations have also breached the seven-figure barrier.

The latest data from the Real Estate Institute of Victoria showed 173 suburbs in Melbourne with a million-dollar median, the result of 13.8 per cent annual price growth across the city.

Melbourne’s overall median house price has reached $1.072 million.

Top growth suburbs included Keysborough, which recorded 22 per cent median price growth in the September quarter, Beaumaris at 16.6 per cent quarterly growth and Frankston South at 15.7 per cent growth in the quarter.

Regionally, median house prices in Geelong, Newtown and Lake Wendouree breached the million dollar barrier for the first time, with Wangaratta, Lucas and Point Lonsdale among the state’s top growth areas at 19 per cent, 14.1 per cent and 13.4 per cent quarterly price growth, respectively.

REIV’s newly elected president, Adam Docking, said the growth was reflective of high demand coming at a time of relatively low properties available for sale.

“The September quarter also had the most number of days of complete COVID-19 lockdown, which had a significant impact on the real estate market’s workings and, ultimately, resulted in less stock and fewer transactions,” Mr Docking said.

“There’s a distinct correlation between a lack of activity in the market and prices and as Victoria emerges from COVID-19 restrictions, we expect the market to stabilise.

“That said, a late start to the typically busy Spring selling season means momentum should continue through to Chritsmas, and a return to in-person inspections is giving buyers and sellers more confidence to transact.”

The price growth recorded in the September quarter came as Melbourne’s auction market struggled through the challenges of lockdown, according to CoreLogic’s latest analysis.

Homes being withdrawn from auction resulted in a 68.2 per cent clearance rate in the September quarter, CoreLogic said, with 61.6 per cent of auctions withdrawn in the week ending August 29 at the peak of lockdown restrictions.

Overall, there were 9,493 properties taken to auction in the quarter, compared to the previous three months when 13,693 properties were scheduled to auction.

“Melbourne’s auction conditions were profoundly weaker relative to Sydney through the September quarter, with the clearance rate falling to 35.9% over the last week of August,” CoreLogic research director Tim Lawless said.

“The difference between Sydney and Melbourne clearance rates through the September quarter highlights the importance both buyers and sellers put on the ability to physically inspect a property.”

Melbourne’s clearance rate rebounded immediately after restrictions were eased on September 18, Mr Lawless said, the result of fewer withdrawals and a lift in buyer confidence.

Heading into the weekend, Melbourne is set to host the highest number of auctions since late march, accounting for 49.9 per cent of all auctions across the country this week.