Strong buying at the lower end pushes Melbourne property prices higher

By |

Melbourne's median house price climbed by 3.1% in 2008, thanks to the strong demand in the lower-tier of the market according to a new report.

The median house price rose 7.6% in the lowest priced segment of the market compared to 0.3% in the top end, said the Real Estate Institute of Victoria (REIV). The figures marked a stark contrast from 2007, when prices increased 11.3% and most growth occurred in the middle.

In 2007, only one of the 20 fastest growing suburbs was priced below the Melbourne median, compared to 13 in 2008, said REIV CEO Enzo Raimondo. He said the numbers served as confirmation of what many already expected - first homebuyers were driving growth in suburbs such as Laverton, Dandenong, St Albans, Sunshine and Watsonia.

The median in suburbs at the top end of the residential market slumped, however. Toorak remains Melbourne's most expensive suburb, despite dropping 7.3% to $2.6m, said Raimondo. Others, such as Canterbury and Brighton, also showed major drops in prices despite increasing 30-35% in 2007.

"The result is quite good given the continuing difficult economic conditions, and it appears the interest rate reduction and stimulus package introduced late last year are starting to have the desired effect," said Raimondo.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Top Suburbs : penrith , springwood , woolloongabba , wallsend , keperra

go back

Get help with your investment property

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 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 and appointment is free.

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