Melbourne property values have increased in March as demand strengthened leading to the largest rise of all capital cities over the first quarter of 2014.
The Melbourne property market has now moved from recovery into a growth phase. This has been welcomed by the increasing number of vendors who are now more likely to see reserves at auction surpassed and lower levels of discounting in private sales.
The March release of the RP Data-Rismark Home Value Index showed that house values in Melbourne rose by 2.3 per cent over the month and unit prices increased by 1.9 per cent.
Over the first quarter of the year house value growth outstripped units rising 5.8 per cent compared to 2.5 per cent.
Total listings of residential property are falling whilst new listings are rising strongly – 32 per cent in last month, highlighting the strong levels of demand. This is also evident in the more expensive auction segment.
In raw terms the Melbourne market has seen record volumes of residential auctions this March with around 5,300 being held. This surpassed the previous high in the past five years of 3,600 in 2012. Comparing this month in previous years is difficult due to Easter and some months having 5 weekends. After taking all the various and moveable holidays over March into account there is no doubt the Melbourne market has seen a surge in the number of auctions, surpassing last year by 28 per cent. This is less of a change in volume than between 2009 and 2010 but is still highly significant.
The preliminary clearance rate for March was 69.5 per cent, a healthy result in light of the stock levels. This is consistent numbers recorded in December last year.
Robert Larocca, RP Data, April 1 2014
Image credits: By Donaldytong (Own work) [GFDL (http://www.gnu.org/copyleft/fdl.html) or CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons