Small housing prices rocket in regional Victoria

Small housing prices rocket in regional Victoria

Posted on Friday, April 11 2014 at 9:36 AM

An appetite for smaller accommodation in regional Victoria is fuelling a price boom, according to the Real Estate Institute of Victoria (REIV).

and apartments have recorded significant gains, with the median price growing
by 8.2 per cent to $262,500 in the three months to 31 March this year.

Raimondo, CEO of the REIV, says this is the highest quarterly price rise for
smaller regional housing in almost a decade.

units and apartments are becoming increasingly popular as home buyers in
regional towns and cities look to one and two bedroom homes that meet their

“Sales of these homes were high for the
quarter, with more than 500 unit and apartment sales across regional Victoria.”

House prices also grew to a new median price
high of $322,000, however the growth over the quarter was lower than for units,
at 1.3 per cent.

Raimondo says the housing figure is up from a
median of $318,000 in the final quarter of 2013.

For housing, Benalla in the state’s northeast
recorded the most growth at 11.4 per cent in the quarter to a $235,000 median,
and West Wodonga recording a 7 per cent growth to reflect a median price of

In central Victoria, Creswick grew by 8.9 per
cent for the quarter to a median price of $288,500.

Mr Raimondo said that while the residential
property market has rebounded strongly in the past six months, it could
moderate over the course of this year.

“Record low interest rates have been driving
property price growth to date, but any movement in the interest rate or in
employment levels is likely to see a moderation in this growth.”

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