Melbourne, and other housing markets in the Greater Melbourne area, finished 2016 on a high note, according to Andrew Wilson, senior economist at the Domain Group.
Areas like Geelong and the Surf Coast in particular reflected the “nation-leading strength of the Greater Melbourne housing market,” said Wilson.
Geelong, which is located southwest of Melbourne, saw its median house price increase by 8.2% over the December quarter to a new record high of $449,000. Geelong house prices increased by 10.2% over 2016 as buyer momentum was clearly on the rise throughout the year.
Over the past five years, Geelong’s median house price has risen by 26.5%.
Geelong’s unit prices also reported a strong increase over the December quarter, with the median increasing by 2.1% to $295,000, the highest quarterly growth of the year. “Although the Geelong unit market finished the year on a positive note, annual unit prices fell by 4.2 per cent,” Wilson said.
The Surf Coast
The Surf Coast Shire, which is located in the Barwon South West region of Victoria, recorded exceptional growth over the December quarter. The median house price increased by 7.9% to $728,000—the first time it has gone over $700,000.
Unit prices were up by 1.8% over the December quarter to a new median of $580,000. House prices on the Surf Coast grew by 6.7% over 2016, with annual unit prices rising by 13.7%.
Melbourne is Australia’s most consistent capital city housing market, having achieved a record-breaking 17 consecutive quarters of house price growth.
Over the past five years, Melbourne’s median house price rose by 48%.
Meanwhile, the city’s median house price increased by 3.6% over the December quarter, attaining a new record of $795,447.
Melbourne’s unit prices rose by 2.4% over the December quarter, hitting a new median of $459,181. Despite the city’s solid quarterly performance, unit prices have risen just 2.8% over the past year.
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