Government aid, rate cuts cushion Melbourne properties

By |

Melbourne property prices fell more slowly than expected in the December quarter, thanks to lower rates and the First Home Owner Grant boost.

The latest data from the Real Estate Institute of Victoria (REIV) showed the median house price falling by 0.9% to $426,000, while units dropped 1.1% to $365,000 in median price.

REIV CEO Enzo Raimondo said the impact of the current economic conditions has had a softer effect on prices than expected over the December quarter period.
"The interest rate reductions late last year, together with the First Home Owner [Grant] incentives have helped to soften the effect on prices," he said.

Cheaper properties were the better performer, falling only by about 3%, compared to the 12% drop in the higher price brackets.

Raimondo noted that properties in the $500,000 and below price range in suburbs such as Craigieburn, Deer Park, Ferntree Gully, Boronia, St Albans and Thomastown have defied the downtrend.

In contrast, he said, big drops in the median occurred at the higher end of the market last quarter, in suburbs which had seen considerable price growth during the 2007 calendar year. This includes prime suburbs such as Brighton, seeing a median house price drop by 4.7%, Camberwell, falling by 8.2%, and Kew, recording a whopping 12% fall in median prices.

Demand for more affordable property has also helped property values in some regional areas, such as Bendigo and Geelong.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : reservoir , alexandra hills , kariong , rockville , cardiff south

go back

Get help financing your investment



Do you need help finding the right loan for your investment?


When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here