Tide on the rise as the bay area gets buoyant
The Sunday Age
Sunday March 20, 2011
SOARING BUYER CONFIDENCE HAS REVERSED A DECLINE. The Melbourne property market recorded exceptionally strong growth in prices between the June quarter 2009 and the December quarter 2010, according to data from Australian Property Monitors.The median house price rose by 33 per cent over that period as buyer confidence soared, particularly among first home buyers. Although most other capitals also recorded significant growth in this period, Melbourne was the outstanding performer, clearly leading the next best, Sydney, which recorded a median house price growth of 20 per cent.The median price for Melbourne units has also grown significantly, rising by 24 per cent between the December quarter 2008 and the December quarter 2010, second only to Darwin's median unit price growth of 38 per cent over that period.The strength of Melbourne's housing market has been impressive since the double whammy of rising interest rates and the global financial crisis flattened demand during 2008. Bolstered by the stabilising effect of various government stimulus measures, median house prices have recovered, with many suburbs recording significant rises in the annual median price.Melbourne's top 10 suburbs with the fastest growing median house prices for the three years between 2008 and 2010 were clearly led by St Kilda West with a growth rate of 94.9 per cent. The other top 10 fastest-growing suburbs were Jacana and Lyndhurst with 71.4 per cent, Essendon North 72.2 per cent, Hadfield 69.6 per cent, Broadmeadows 66.7 per cent, Sunshine North 65.1 per cent, Albion 61.6 per cent, Dallas 57.1 per cent and Braybrook 56.9 per cent.With the exception of St Kilda West, with a December quarter 2010 median price of $1,540,000, these suburbs are modestly priced, with median prices ranging from $330,000 for Dallas to $791,000 for Essendon North. Eight of the top 10 fastest-growing suburbs are located in Melbourne's middle and outer-ring northern and western suburbs.Melbourne's top 10 suburbs with the fastest-growing median prices for units between 2008 and 2010 include Box Hill 59.2 per cent, Springvale 57.0 per cent, Meadow Heights 54.5 per cent, Albion 53.0 per cent, St Albans 50.3 per cent, Altona 50.0 per cent, Clayton South 48.4 per cent, Carlton North and Broadmeadows both 47.9 per cent and Tullamarine 47.8 per cent..
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