MELBOURNE’S median house value has had the fastest growth of any Australian capital city for the past three months, according to new figures from CoreLogic.
New figures from CoreLogic showed a 5.2 per cent lift in the city’s median house price surpassed every other capital in the country.
The median house value now sits at $641,500, the CoreLogic Hedonic Home Value Index revealed.
To the final day of September, the median house price rose more than $55,100 (9.4 per cent), according to the Index.
The 12 month growth was slightly behind Sydney’s median house price gains — up 10.6 per cent.
Melbourne was also the nation’s second priciest capital city, behind Sydney where the median house price has reached $890,000, and just ahead of Canberra’s $625,000.
CoreLogic noted that the gains in Melbourne were strong, but not as strong as they were at the peak of the market in mid-2015.
The positive figures follow a sustained boon to property prices that had not been seen in more than a decade, according to CoreLogic senior data analyst Tim Lawless.
He said the last sustained growth period of a comparable duration had occurred between 2000 and 2004, but that unlike the boom at the turn of the millennium, most of the recent growth had been centred on Melbourne and Sydney.
“Back then it was a slightly higher rate of growth actually, but very different economic conditions as well,” Mr Lawless said.
“Household debt was much lower for example and interest rates were higher and it was very similar in the sense that Sydney and Melbourne really started the boom but then growth actually spread to markets like Brisbane and Hobart and Adelaide and so forth, which really hasn’t happened as much this cycle. We have not seen that ripple out of capital gains into other markets as much as what we did the last phase.”
The median unit price in Melbourne also rose, though not as significantly as house prices.
A 5.2 per cent lift to $485,100 year-on-year, added almost $24,000 to the median price of unit’s in the city.
Mr Lawless said concerns over an oversupply of units in the Melbourne market
“I think that oversupply is affecting the performance of the markets that are oversupplied, and that is the key thing you need to remember that the supply situation in Melbourne and Brisbane is very much confined to a specific geography particularly around the inner city market, which in the grand scheme of things is certainly important, but it is only a very small proportion of the market that does look oversupplied,” Mr Lawless said.
“You can see that playing out in unit figures as well, unit growth is substantially lower than houses.’’
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Written by Nathan Mawby for News Corp Australia Network