Historic house prices for regional Victoria as Melbourne holds the line

The median house price in metropolitan Melbourne is $1,010,000 and $559,500 in regional Victoria, according to recent data released from the Real Estate Institute of Victoria.

The REIV’s June quarterly report reveals that metropolitan Melbourne is holding steady above $1 million and is confirmation that the historic March quarter result was not a one-off spike following the 2020 lockdowns.

Regional Victoria’s 10.5 per cent quarterly growth and almost 20 per cent annual growth in house prices – the highest on record – reaffirms the trend in tree or sea change investment and relocation.

REIV President Leah Calnan said that as expected, the metropolitan market is holding its strong position as interest rates remain at record lows.

“Buyers and sellers across the state are still active within a growth market, with all metrics holding strong,” Ms Calnan said.

“Winter is typically a relatively low activity period but this year was different – Victorians are out there making property decisions,” she said.
Many factors have contributed to the above-average number of sales during the June quarter, including an end to some stamp duty incentives.

“With stamp duty concessions for first home buyers ceasing at the end of June, we saw enthusiastic interest in the weeks leading up to 30 June,” Ms Calnan said.

“The stand-out insight from REIV’s June quarter report is the propensity for buyers to genuinely consider regional Victoria as an attractive option for living and investing.

“We know that COVID-19 has created flexibility in employment arrangements and hybrid working models are allowing people to set their property sights beyond Melbourne.

“It’s also true that there are plenty of investment opportunities in regional areas.”

Ms Calnan added that the Victorian Government has also been active in providing incentives for businesses and residents to set up shop and home in regional Victoria.

Hayeswinckle Drysdale sales consultant Michaela Miller said the endless benefits of living in Geelong and surrounds continue to see our market go from strength to strength.

“For the last five to seven years, our small, humble town has steadily grown in popularity with Melburnians, however the last 12 months in particular has seen the biggest spike,” Ms Miller said.

“Those yearning for the perfect work/life/play balance find Geelong, The Bellarine and Surf Coast the perfect place to plant their roots.

“Every suburb across the region has had its own boom, and the low days on market matched with heated buyer competition, prices have soared.

“Where else can you work in a major city, and then retreat to your own slice of paradise within 50 minutes, surrounded by the beautiful Bay, Wineries and the enviable ‘coastal meets rural’ lifestyle?”

Other key findings from the June report include:

The City of Greater Geelong recorded a median house price of $695,000, a 7.9 per cent quarterly increase from its March median of $644,000

An increase from 155 to 177 metropolitan suburbs with at least $1 million median house prices

June quarter 2021 saw the highest number of auctions held and sold for any June quarter, with 11,904 reported and 9,880 sold

Days on market (private sale) for regional Victoria was 29 days in June 2021, five days below the metropolitan median figure of 34 days.