The median house price in Victoria has recorded its largest increase since 2000, according to data from Real Estate Institute of Victoria’s quarterly December report.
For the first time, metropolitan houses in Melbourne surpassed a median value of $900,000, jumping by 9.5 per cent from the September quarter to land at $941,000.
With most spending more time at home than ever throughout the year, families took the opportunity coming out of lockdown to upgrade their home.
This benefited house prices in middle Melbourne, the typical suburban family belt, which increased by 8.0 per cent from September to reach $1,066,500, and valued houses at 7.3 per cent above the December 2019 median.
Regional Victoria also saw traction in the market, recording its highest quarterly growth since 2003.
Houses achieved a median price of $485,500, recording a 9.2 per cent increase from the September quarter, and 7.5 per cent annual growth.
Geelong saw a median increase of 7.7 per cent for the year with a median of $614,000 while the Surf Coast shot up 15.5 per cent to $970,000.
While regional unit prices recorded a 3.5 per cent quarterly increase, they are now 10.3 per cent more valuable than they were 12 months ago.
Units in metro Melbourne achieved a median price of $639,500, 2.5 per cent higher than the September quarter and an annual increase of 3.8 per cent.
Following the lifting of intensive lockdowns in October, activity in the property sector returned in Victoria, with an estimated 29,500 transactions in the December quarter.
It was the highest number of quarterly transactions in 2020, surpassing the March quarter at 27,500.
REIV president Leah Calnan said the Victorian property market had remained remarkably resilient in 2020 despite dire market predictions at the onset of COVID-19.
“Throughout the July and September quarters, we received constant reports of low listings and activity.”
Once restrictions across the state eased, demand and buyer competition skyrocketed.
“Certainly, low interest rates and government incentives including stamp duty concessions and first home buyers grants added to buyer appetite for the December quarter, while volatility and uncertainty in the Australian equity market have secured property as a preferred investment option for Victorians.”