Melbourne - The Nation's Best Performing City

February 2010 - Author: Randolph Clements

Melbourne led the recovery of the Australian property market in 2009, achieving a new record median house price of $540,000 in the December 2009 quarter, an increase of 15% from $470,000 in the September quarter. Growth in units and apartments, according to the (Real Estate Institute of Victoria), was also significant, with a 7.6% increase from $410,000 to $441,000. House prices also increased in key centres in regional Victoria. These exceptional levels of growth are mainly due to better than expected economic conditions and population growth.
The latter half of the year saw strong demand and significant house price growth across all sectors, from the lower to the top end. Activity in the higher priced property markets accelerated as the year progressed, a trend likely to continue into 2010. While the first quarter of the year saw properties priced over $1m account for 3.3% of national house sales, their market share increased to 5.1% by the third quarter.
Properties listed at auction enjoyed a clearance rate of 81%, compared to 63% in 2008. Vendors also enjoyed a decline in the average time their property remained on the market, with houses averaging 26 days on the market as at November, compared to 32 days the previous year, according to RP Data. The level of vendor discounting also fell. Basically, vendors are selling their properties more quickly and are not having to offer big discounts in order to achieve those sales.
The first month of 2010 has brought very strong levels of buyer inquiry, according to both Domain and Raine & Horne agents at the ground level – and not enough properties listed. Properties are in demand, prices are strong, and vendors are encouraged to capitalise on current opportunities.

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