The state’s regions have capped off a strong 2022 despite eight interest rate rises and “a confluence of pressures from the rental market”, says the REIV.
The Real Estate Institute of Victoria’s (REIV) December Quarterly Median Report has highlighted that regional Victorian house prices jumped 8 per cent over the 12 months of 2022, reaching $610,000.
Over the same period, the median for units and apartments also rose to $425,000, a 6.5 per cent increase.
Looking to the last quarter, Kyneton was the standout performer — adding $100,000 to its median house price and breaking the million-dollar mark ($1.04 million).
Stawell also saw strong growth, finishing up the year with a median house value of $375,000. Its quarterly growth of 8.7 per cent pushed the town’s median growth over the year to 21 per cent.
The latest findings prove regional Victoria outshone its metropolitan locales, where house prices dropped 3.3 per cent over the 12-month period — to $1.04 million.
It wasn’t all net losses in the capital city, with house prices in outer Melbourne growing 1.8 per cent to $830,000 over the 2022 year.
Cobblebank had some stellar annual growth, with the median house price jumping to $635,000 — a boost of 18.5 per cent.
Harkness saw growth of 17.8 per cent to $625,000, while Melton and Weir Views saw double-digit growth of 11.5 per cent and 10.8 per cent to record median values of $470,000 and $537,000, respectively.
Zooming into the last quarter, REIV said that there are now opportunities to be found by buyers, with the median dipping to $974,500 — a drop of 0.6 per cent.
And with the suburbs of Harkness, Melton and Weir Views all remaining within the affordable bracket, the REIV reported that these suburbs are “showing great investment potential for home owners”.
REIV president Andrew Meehan reiterated that the latest data “demonstrates good buying opportunities for Victorians and a resilient real estate market across the state”.
“The drop we’ve seen in the median prices in metro Melbourne must be seen in the context of the rapid price growth Victoria has recorded over the past two years,” the president acknowledged.
Flagging how property prices still remain higher than they were in December 2020, he highlighted that “the post-COVID real estate boom has placed Victorian property in a stronger position than ever before, a trend we continue to see across numerous suburbs in metro Melbourne and our regional areas”.
“Now, as we enter the new year and the immigration levels return, we will no doubt see continuous demand in the market as Melbourne’s population grows and investors see strong potential for growth in our state,” he concluded.