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Pop Melbourne’s median house price drops 8.3% and some suburbs fall up to 25% over 1 year
December 18, 2011 by Editor · Leave a Comment
Coming to grips with Melbourne’s property market has been no easy task this year.
While vendors in some postcodes have been rewarded with quick and healthy sales, many others have struggled to find a buyer even after lowering their reserve.
There’s no doubt the market has been hit with a healthy dose of the blues in 2011.
But just how far prices have come back not only depends on who you ask, but over what period you base your price data on.
At its worst, Melbourne’s median house price has lost $50,000 this year after peaking at $601,000 last December – an 8.3 per cent drop.
These figures come from the Real Estate Institute of Victoria’s quarterly reports, which take in three months of sales.
A wider focus, however, produces a less dire outlook.
Looking at sales results for the 12 months leading to November last year, the REIV puts the city’s median house price at $546,000.
Over the same period to the end of November this year, the institute puts the median at $550,0000, which means prices have generally stalled rather than gone backwards.
As with any market there are always winners and losers.
Based on the REIV’s longer analysis, which “smooths out” price fluctuations, Derrimut, Healesville and Taylors Lakes have all recorded double-digit price growth over the year, with the median price in Derrimut rising 17 per cent.
Cockatoo, Caroline Springs, Sunbury, Chirnside Park, Ivanhoe, Melton and Cranbourne North have also bucked a slow market with price growth of between 8 and 9 per cent.
At the other end of the scale, South Yarra has taken the biggest hit, with the median house price diving 25 per cent. Clayton, Hughesdale, Ashburton, Heidelberg West and Mont Albert North have also recorded steeper-than-average price dips.
Whatever set of data you look at, one thing is clear – the biggest price falls have generally happened in top-end, inner-city suburbs while the outer suburbs are withstanding the downturn.
The median house price in postcodes within 10km of the CBD is down 3.3 per cent, according to the REIV’s 12-month analysis.
Middle-ring suburbs – 10 to 20km from the CBD – are down 1.6 per cent, while prices in the outer suburbs have held their ground.
The correction comes after several years of above-average growth, with prices rising 50 per cent between 2007 and 2010.
“Where there have been price improvements this year it has been in the more affordable area of the market,” REIV spokesman Robert Larocca said.
“Again, that just comes back to supply issues and population growth.”
Melbourne auctions have also been drawn out affairs and growing numbers of vendors have opted for a private sale.
Wantirna South boasts the city’s strongest clearance rate of 81 per cent, although the suburb hosted only 33 auctions. Abbotsford is also near the top of the list with a clearance rate of 79.4 per cent from 107 auctions.
Other leading auction suburbs – hosting high numbers of auctions and healthy clearance rates – include Mont Albert, Caulfield North, Fitzroy North, Clifton Hill and, despite The Block flop, Richmond.
Sunshine West has the city’s lowest clearance rate of about 23.9 per cent.
Homes have also struggled to sell under the hammer at Noble Park, Dandenong and Avondale Heights.
Source: Herald Sun
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