Great year for market

It’s been an exceptional year for Victoria’s property market, with capital growth of 7.9 per cent and a record high regional median house price of $385,000.

In the Surf Coast, strong buyer demand saw house prices in the municipality increase 6.5 per cent over the year to a median of $728,500. This is significantly higher than the median house price in nine metropolitan municipalities including Brimbank ($630,000), Hume ($520,000) and Greater Dandenong ($680,000).

Lorne was the main driver of this growth with its median house price rising 28.3 per cent over the year to $952,500 – an increase of $210,000 on September 2016 figures.

Houses in the coastal town now command a higher price than the metropolitan Melbourne median house price ($817,000) and are almost on par with those in the city’s middle ring ($985,500).

Significant capital gains were also recorded in nearby Jan Juc, where the median house price increased 22.9 per cent over the year to $775,000. This was an increase of $134,000 on the same period last year.

House prices in Torquay and Aireys Inlet experienced more moderate growth, up 5.8 and 3.6 per cent respectively. This has boosted Torquay’s median house price to $720,000 while Aireys Inlet has a median house price of $705,000.

While the region has already benefitted from strong price growth in Geelong, new infrastructure commitments such as the Surf Coast Rail Project will add value to the municipality.

The $110 million project will prepare for duplication between South Geelong and Waurn Ponds, as well as reserve land for a future train line to Torquay. Once completed, these projects are expected to increase the attractiveness of the region for commuters, driving long-term price growth.

For more information on median house prices or region, head to reiv.com.au/market-insights.