Housing conditions 'slightly ease' in Victoria

Improved affordability thanks to two interest rate cuts in November and December 2011 has contributed to a slight easing of housing conditions for buyers in Victoria in the final three months of last year, according to the Real Estate Institute of Victoria (REIV).

Enzo Raimondo, chief executive of the REIV, asserted that the overall median house price across the state has remained largely unchanged over the past six months, although the number of transactions is "significantly lower" than during the same three-month period in 2010.

In December 2011, the median price for a house totalled $550,000, while the median price for a unit stood at $455,000. These figures represent an increase of 1.9 per cent and 1.1 per cent, respectively, when compared with September 2011.

Raimondo highlighted a number of suburbs in Melbourne that have witnessed particular growth in the past three months - a list which may be of interest to anyone planning a Melbourne investment property purchase.

"The strongest growth in demand was found in Kew, Prahran, Kensington, Mornington, Port Melbourne, Balwyn North, Blackburn, Wantirna South, West Footscray and Mount Waverley; however, most of these suburbs recovered ground lost in the September quarter," he stated.

Melbourne's new Docklands development has also attracted attention in recent months, with plans for a new multi-use civic centre and library announced last year.

Posted by Sara Pritchard