The best performing suburbs of 2013

In the December quarter last year the median value of a house in Melbourne rose by 2.6% to $542,053. Over the last year the increase was 10.7% from $489,696.

A similar increase was recorded for units. The median value of a unit rose by 2.3% to $442,043. Over the last year the increase was 9.8% from $402,440.

This confirms that 2013 was a good year for real estate in Melbourne. Values rose as demand increased and more people bought and sold residential real estate.

The market remains below its previous nominal peak underscoring that we are in a recovery phase.

In the houses market the strongest growth in values over the year was recorded in Kew East, Balwyn North, Caulfield, Maribyrnong and Balwyn. Value growth was also recorded in the more affordable sub $500,000 segment with the highest growth occurring in Watsonia where values rose by 12.3% and above the city- wide rise.

Change in values between September 13 Q and December 13 Q - Houses

The strongest growth over the quarter was concentrated in the more affordable suburbs of Hastings, Knoxfield, Mitcham, Keilor East along with Camberwell. This suggests that the substantial rise in auction volumes (the more prevalent sales method in the inner city) acted to moderate price growth.

Change in values between September 13 Q and December 13 Q - Houses

In the unit market the highest growth over the year was recorded in Malvern East, Balwyn, Northcote, Bentleigh East and Balwyn North.

Change in values between December 12 Q and December 13 Q - Units

Taking a broader view of the Melbourne market the data shows that inner eastern suburbs of Balwyn and Balwyn North recorded the strongest demand across all property types.

Looking forward to 2014, it is clear that the market is primed to move from a recovery to growth phase whilst economic conditions, consumer confidence and monetary policy remain favourable.

Robert Larocca is Victorian housing market specialist for RP Data.

 


Robert Larocca

Robert Larocca

Robert Larocca is Victorian housing market specialist for CoreLogic RP Data.

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