By Gil King, REIV CEO
THE Victorian property market has displayed true strength in holding firm against all predictions regarding the impact of COVID-19.
The latest quarterly median prices released by the Real Estate Institute of Victoria (REIV) show that the market is still strong. While there has been a small adjustment from the previous quarter, the market is in much better shape than it was in 2019 across all property types.
House values in regional Victoria have held steady with the quarterly median house price at $420,000 – up by 0.1 per cent over the past quarter and a healthy 3.7 per cent annual growth.
Regional units have shown tremendous growth of 13.6 per cent over the past quarter, the median unit price for regional Victoria of $339,000, setting a new quarterly record.
House values in Melbourne fell by just 3.5 per cent over the June quarter, following four quarters of continuous growth. With a median price of $864,000, houses in metropolitan Melbourne are still 6.1 per cent more valuable than they were at this time last year.
The underlying strength of the Victorian market is evident as prices have stayed firm despite volume of sales transactions significantly reduced due to the restrictions imposed by the pandemic. 29 per cent fewer properties sold in Victoria for the June 2020 quarter when compared to the June 2019 quarter.
New records have also been set for houses and units sold by private treaty. Houses sold by this method are up by 7.6 per cent and unit sale prices have grown by 3.4 per cent over the quarter.
2020 has presented challenges in every respect and these results should provide a great source of confidence for all Victorians.
Many pundits predicted doom and gloom amid crashes for Victorian property prices and that just hasn’t happened. Despite COVID-19, our market is stronger than 2019.
Prices haven’t tumbled. Any home up for sale in Victoria is swamped with interest from buyers. The REIV June quarterly results are great reading, these are good prices, our market is resilient, and we can move ahead with confidence.
Prices have held despite transaction volumes being down, and these are historically unprecedented times.
As always, if a buyer or a seller is looking for objective information on the market or an agency – they should visit reiv.com.au.