Outer Melbourne joins regional Victoria in record breaking prices

The flee from city living has intensified for Victorians, according to the Real Estate Institute of Victoria, with new data showing outer Melbourne has joined regional Victoria in the latest round of record-breaking house prices.

The REIV’s June Quarterly Median Report reveals outer Melbourne houses – those 20 kilometres or more from the CBD have reached their highest-ever quarterly median price, with a 0.9 per cent increase to $856,000, up from $848,500.

Annual growth for outer Melbourne houses has grown by 12.6 per cent.

Despite climbing the median price ladder, outer suburbs are still ranking as some of most affordable spots for aspiring homeowners.

Melton South ($510,575), Wyndham Vale ($580,000) and Werribee ($600,000) are among Melbourne’s most affordable pockets.

Regional Victoria’s medians held strong with property value increasing across houses, units, and apartments.

The median house price in regional Victoria saw a 21.6 per cent annual increase from $500,000 to $608,000.

Units in regional Victoria peaked to $418,000 in the June quarter reaching a new price record and shot up 14.5 per cent over the financial year.

REIV president Richard Simpson said that while there has been discussion on the impact of interest rate rises on house prices, it’s important to note that Melbourne has recorded over 23 per cent increase in home prices over the last two years.

“The market remains strong, especially across regional Victoria,” Mr Simpson said.

“As expected, we saw a slight decrease in metro Melbourne as the market adapts to the current rising interest rate environment.”

The data reveals some strong price growth, such as in Horsham, where median house prices have spiked more than 40 per cent growth to an average $393,750, but that there are also still plenty of bargains in the bush.

Stawell sits top of the list offering homebuyers a $322,500 median, despite showing an annual 26.5 per cent increase.

Morwell offers a median price tag of $325,000, after recording an annual 30 per cent increase.

In metropolitan Melbourne, a 2.9 per cent median house price drop to $1.081 million, down from $1.1135 million didn’t dent an impressive 13.5 per cent annual increase.

Leading the charge in the metropolitan Melbourne’s unit growth is North Melbourne, rising 43.3 per cent to $666,500, up from $465,000.

This was followed by Ormond, which recorded a 33.8 per cent quarterly increase to $709,000.