Melbourne’s median house price reflects booming market
Melbourne’s property market has hit new highs, kicking off the year with a new median house price of $900,000.
New figures from Domain show Melbourne’s median increased by 3.2% in the December quarter, consistent with almost five and a half years of consecutive price rises seen every quarter in the city.
Not surprisingly, the strongest price growth was seen in Melbourne’s affordable north-west and western suburbs, such as Sunshine and Werribee. These regions saw a quarterly increase of 8% and 10%, respectively, driven predominantly by the first home buyer market.
Across the city, the market’s momentum has been spurred by strong population growth. Latest Census data reveals Victoria led the country with a 22% increase in population between 2006-2016. As a result, heighted demand for homes has continued to outstrip supply, driving prices upwards.
The sustained growth of Melbourne’s median house price is a positive indicator for those looking to buy at the moment, highlighting the potential for capital growth across the state. Moreover, it indicates that buying a home still stands as a smart long-term investment, especially if you’re looking to live in your home for more than five years.