Solid capital growth

The state’s property market continues to experience solid capital growth, with house prices increasing 6.4 per cent over the year to a record high $385,000.

In the year to June 30, towns within commuting distance of the city were the main drivers of this growth with almost half of the top performing towns located within Greater Geelong.

The latest REIV data shows the Geelong suburb of Hamlyn Heights recorded regional Victoria’s strongest median house price growth over the year, increasing 24.2 per cent to $485,000. This was up from $390,500 in June last year.

Similar price growth was also experienced in East Geelong with the median house price topping $576,000 in June – an annual increase of $106,000.

Geelong West was another top performer with house prices in the suburb rising 21.5 per cent over the year to a median of $617,000. This was up from $508,000 in June 2016.

Meanwhile, Heathcote on the outskirts of Bendigo recorded the state’s largest growth outside of Geelong with house prices in the town increasing $50,000 over the year to a median of $300,000.

Significant price growth was also experienced in the Ballarat suburb of Soldiers Hill, up 18 per cent over the year to a median of $407,000 – an annual increase of $62,000.

Buyer demand for properties within commuting distance of Melbourne also delivered dividends for vendors in the Geelong suburbs of Highton, Belmont, Norlane with house prices rising by at least 16 per cent to $618,750, $480,500 and $258,000 respectively.

Kilmore, north of Melbourne, also benefitted from its proximity to the city with house prices in the town up 15.4 per cent over the year to a median of $385,000.

Other towns recording double-digit price growth include Maldon, up 11.2 per cent to $435,000; Ballarat Central, up 10.8 per cent to $385,000; Gisborne, up 10.4 per cent to $670,000; and Trafalgar, up 10.2 per cent to $343,250.

For more information on median house prices by town or region, head to reiv.com.au.