Median home prices in the city have risen in the space of a year, and a global real estate powerhouse believes a “rebound” from Covid-19 restrictions will add to the boom.
The median house price in Melbourne has skyrocketed $ 175,000 in the space of a year, according to the country’s leading data experts.
The latest figures from the Australian Bureau of Statistics show that the typical city household accumulated $ 491 a day in the 12 months to June 30, including an increase from $ 45,000 to $ 895,000 in the last three months.
It comes as global real estate giant Knight Frank predicts that Covid-19 restrictions could launch renewed activity in the city’s property market and help propel Australia up the global rankings, after it ranked seventh in the world by growth in the last financial year.
The ABS figures, released Tuesday, also include a 6.1 percent rise in Melbourne’s residential price index, an algorithm that tracks the prices of homes, including units, townhouses and apartments, from broader way, not just those sold.
It’s the biggest growth in three months since the index rose 6.6% in December 2009.
Despite this, Melbourne was the fourth fastest growing market in the country, behind Canberra, Sydney and Hobart.
The growth completes a phase of huge growth in the city’s property price index over the last financial year, with a 15 percent increase despite Melbourne’s housing market being closed for months during the second wave of Covid-19 lockdown of the city last year and a handful of short shutdowns earlier this year.
ABS data does not cover the fifth and sixth crashes in Melbourne.
Knight Frank’s latest Global House Price Index, released yesterday, ranked Australia’s real estate market seventh best in the world with a 16.4 percent rise in the company’s house price index.
The list was led by a 29.2 percent increase in Turkey, followed by a 25.9 percent increase in New Zealand.
The United States, Slovakia, Sweden and Luxembourg also surpassed Australia on the 55-nation list. Spain ranked last after its index fell 0.9 percent.
Knight Frank’s head of residential research, Michelle Ciesielski, said that with Melbourne achieving double-digit house price growth despite several months of lockdown during last year’s second wave of Covid-19, she expected the The city will recover strongly as current restrictions are relaxed.
“We have seen a rebound after these restrictions have been eased each time,” Ms. Ciesielski said.
“For a city hit by multiple closures, the results have been pretty strong.
“People are certainly re-evaluating the way they want to live, and Melbourne people have experienced it more than anywhere else.”
However, he noted that how Melbourne’s market was this spring would be quite important, particularly given that the city largely missed its main sales season last year.
The city is also likely to see a shopping spree after international travel restrictions change, with the company’s Asia-Pacific project marketing team reporting that Melbourne “tops their list” of cities they want to shop in. when travel can be resumed.
“So there is still potential for Australia to move up the rankings further, and we have been in the top three in the past,” said Ms Ciesielski.
ABS Price Statistics Director Michelle Marquardt added that it was important to note that houses, rather than apartments, were leading growth in Melbourne and most of the rest of the nation.
“The continued growth in property prices came at a time of historically low interest rates,” said Ms. Marqhardt.
“The persistently low levels of inventories in the market were met by strong demand and properties were trading at an increasingly rapid pace.”
Average house prices in ABS are preliminary and subject to review over the next 12 months.
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