Suburban units rise steadily despite downturn,
This year has seen slow growth in home prices across Melbourne.
However, one type of dwelling is defying this trend.
Apartment prices in outer Melbourne increased by 0.6 percent during the September quarter.
As a result, the median price for these apartments reached $603,000.
Additionally, data from the Real Estate Institute of Victoria (REIV) shows that outer Melbourne apartments have experienced 18.8 percent growth over the past five years.
This is a significant figure in a year that has experienced little growth so far.
REIV CEO Kelly Ryan believes family-friendly amenities are a key factor attracting buyers to Melbourne’s outer fringes.
Ryan states, “The growth in median apartment and unit prices for Melbourne, along with strong sales volumes, highlights opportunities in this area.”
He adds that access to schools, transport, and other lifestyle conveniences helps ensure a positive long-term trend for outer Melbourne.
According to Ryan, unit transactions in outer Melbourne have more than doubled over the past five years.
In the third quarter of 2024, there were 6,387 reported sales compared to the numbers from 2019.
Melbourne’s outer suburbs have nearly caught up to the inner city in terms of pricing.
Currently, the metropolitan median unit price sits at $628,000, which is just $25,000 more than the suburbs.
Moreover, the most remarkable price growth has occurred in regional Victoria.
There, units have increased by 42.6 percent over the past five years.
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Regional hotspots such as Bendigo and Ballarat have ranked among the state’s top areas for price growth during the September quarter.
House prices in these regions have also shown impressive performance, with a 46.3 percent increase over the past five years.
Currently, a median house in Ballarat can be purchased for $627,500.
