The REIV median prices for the September quarter show that Melbourne’s median has experienced a decline of 3.3 per cent. This can be directly attributed to continuing economic uncertainty, a tightening of liquidity markets and a decline in investor and consumer confidence. The suburbs that have shown the greatest decline in median values in the quarter are in the more expensive end of the market and are the same suburbs that enjoyed unsustainable growth throughout 2007.
Of the top 20 growth suburbs for the quarter: only five have a median price in excess of the September median, $435,000.
This is a result of the increased demand for affordably priced properties − and this demand is driven by three factors: Melbourne’s strong population growth; a undersupply of newly constructed properties and a further tightening in the rental market
Two suburbs in the outer east, Keysborough and Narre Warren, top the list of growth suburbs. The median in Keysborough increased by 13.4 per cent − from $353,250 to $400,500 − and in Narre Warren the median increased by 13.1 per cent, from $291,000 to $329,250.
The other three suburbs to record double-digit growth in the September quarter were Lalor, Ascot Vale and Coburg. Lalor’s median increased by 11.7 per cent to reach $327,500; in Ascot Vale it increased by 11.5 per cent to $690,000; and in Coburg a strong growth cycle continued with a 10.3 per cent increase to $693,750.
Other suburbs in the top 10 were Frankston South, Preston, Mount Eliza, Diamond Creek and Bundoora.
REIV analysis of the market over the last 12 months reveals a trend that has seen a number of suburbs continuing to experience strong growth they are: Broadmeadows, Narre Warren, Keysborough, Coburg and Lalor.
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