REGIONAL Victoria’s median house price last year recorded its largest annual increase since 2001, according to a report from the Real Estate Institute of Victoria, REIV.
In 2021, the median house price in regional Victoria grew 27 per cent and reached $565,000, while units and apartments achieved an annual growth of 19.6 per cent and reached $395,950.
REIV president Adam Docking said the data shown in the report reflected the attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions.
The median house price in metropolitan Melbourne maintained an increase of 4.2 per cent in the December quarter and 18.9 per cent annually. Prices saw an annual increase of 18.3 per cent in middle Melbourne, while the median price in outer Melbourne is now 16.4 per cent higher than 12 months ago.
There was a 144 per cent increase in house sales in 2021 compared to 2020, with 15,954 auctions and 12,794 sales in the December quarter contributing to the strongest ever performance for both auction volume and sales in any quarter.
Mr Docking said he expected the market would soon begin to stabilise as some of the listing volume issues were addressed and buyers had more choice, however the effect of the omicron surge was yet to be fully understood.
“At this stage it’s too early to tell. Virus safety is front of mind and Victorians are well adjusted to the protocols they need to prepare for when attending inspections,” he said.
“Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021.”
Mr Docking also emphasised the need for the government to improve infrastructure investment to support unprecedented growth in regional Victoria.
