Suburb Prices & Value

The property market in Victoria showed significant increases overall throughout 2014. The residential, commercial and industrial markets experienced an increase in the total number of sales and the total value of sales.

The total value of sales of all property in Victoria increased by 11.9 per cent from $84.1 billion in 2013 to an estimated1 $94.2 billion in 2014. The total number of sales increased by 3.1 per cent from 155,981 to an estimated 160,783, reflecting an increase of 3.1 per cent in residential sales. This continued the trend from 2013 when the total number of all sales increased by 11.7 per cent and the value of all sales had increased by 19.6 per cent.

The median house price in Victoria’s residential property market increased to $460,000 in 2014. It increased by 4.8 per cent in 2013 ($435,000) and decreased by 1.2 per cent in 2012 ($415,000).

In general terms, for the past 10 years house prices have continued to grow, with the state’s median house price rising 70 per cent – from $270,000 to $460,000 – between 2004 and 2014.

Growth in house prices in country Victoria (regional cities and towns) was lower than metropolitan Melbourne, with country Victoria median house sale prices increasing 3.2 per cent compared to the 5.8 per cent rise in the metropolitan median.

Unit/apartment median prices in metropolitan Melbourne increased by 2.2 per cent compared with 0.6 per cent for unit/apartment prices in country Victoria.

Overall, recorded commercial and industrial property sales saw a 22.8 per cent increase in their total value, up from $9.85 billion in 2013 to an estimated $12.09 billion in 2014. The total number of recorded sales for these sectors showed an increase of 1.7 per cent.

The total value of recorded primary production property sales increased by 16.1 per cent and the total number of recorded sales increased by 4.4 per cent.

Analysis of 2014 sales data reveals many interesting facts about Victoria’s property market. Some of these changes reflect the overall state of the property market, while others may relate to the specific impact of sub-market groups.

A sub-market group is a set of properties, grouped by land values and other market characteristics or attributes common to the group, such as land use or building construction.

Changes in the sub-market groups may have occurred due to:

• a new supply entering the market, which influenced median prices;

• new developments of lower or higher quality than is normal for a sub-market group; and

• a large new development in an area being completed during the year.

  For a better understanding of a particular sub-market group’s status within the property cycle, it is recommended that the 2013 and 2014 figures be read in conjunction with the 2004 to 2014 figures.

  There are many variations and exceptions to the overall trends. We encourage readers to compile their own lists and tables from the data provided in the guide, and investigate local sub-market groups thoroughly and then draw their own conclusions on the movements of sales and numbers. 

The median sale price recorded for Melbourne’s units in 2014 was $455,000, an increase of 2.2 per cent on the 2013 figure of $445,000.

The highest median price increases recorded in 2014 included Burnside Heights, up 88 per cent from $202,500 to $380,000; Ashburton, up 49 per cent from $630,500 to $939,000; Macleod, up 46 per cent from $330,000 to $480,500; and Ringwood North, up 34 per cent from $431,500 to $579,500.

Suburbs that recorded the highest fall in median unit sale prices from 2013 to 2014 included Aberfeldie, down 24 per cent from $616,000 to $470,000; Cremorne down 24 per cent from $564,000 to $428,000; and Glen Huntly, down 22 per cent from $505,500 to $393,000.