House prices in Melbourne have tentatively risen by 11.7%, between 2013 and 2014. The median house prices in Melbourne were up 5% in December from the September quarter, to stand at $669,000. The breakup in the property market segments indicates that the prices in outer Melbourne rose by 8.9%, prices in middle Melbourne went up 13.2%, while prices in inner Melbourne rose by 11.7 percent.
In 2014, the Melbourne auction also witnessed a record-breaking performance with 40,000 auctions. Kew suburb remained the fastest growing suburb with an impressive 18.3% growth rate and a median house price of $2,035,000.
Kew is followed by Carlton North, Dromana and Northcote which recorded 17.4%, 16.5% and 16.4% growth rates respectively. In the 4th quarter of 2014, four Melbourne suburbs joined the million dollar class, they were Richmond, Northcote Flinders, and Strathmore. There is a total of 59 suburbs in this closely followed rich list.
The suburb’s that made a comeback back into the list include Clifton Hill, Aberfeldie and East Melbourne. One of the elements attributed to the swelling of the million dollars median price list is the benefit of ripple effect. Case in point is the house price increases in Northcote, which is attributed to a flow in-effect from Fitzoy North. Toorak remains the most expensive suburb in Melbourne with a median house price of $2.85 million. Deepene comes second, with a median house price of $2.25 million. followed by Canterbury with $2.2 million.
The region of Victoria also recorded a rebound. In December, the Victoria regional median house prices rose up 5.5% to $344,000 from September. There was also a 4% price rise in apartment and median units to $257,000. Despite the cross-sectional growth in the Melbourne median house prices, there were several price variations.
The variations were attributed to factors like access to key transportation corridors, seasonal demands, and employment rates. Other price determining factors includes unemployment rates, and business and consumer sentiments. The disparity in the median price range was as high as 25.1% in Colac Otway and as little as a 4% change in the City of La Troupe. Analysts predict that the 2015 autumn season will remain solid as long as interest rates remain low.