Melbourne notches strongest annual house price gains since 2010

It was followed by Sunshine West and Glenroy, both up 29.9 per cent to $720,000 and $810,000 respectively, Thomastown, 29.1 per cent to $688,000, and Hoppers Crossing, 28.3 per cent to $580,000.

House prices in Cranbourne, Frankston, Lalor, Deer Park and Mount Eliza all rose by more than 26 per cent to round out the top 10.

REIV president Richard Simpson said the median house price for Melbourne’s outer suburbs jumped a solid 2.4 per cent to $666,500 in the December quarter.

“Houses within 20km of the CBD are almost out of reach for many first-home buyers, so these buyers are now looking for new entry points to the market, especially in established suburbs with infrastructure, amenities and services,” he said.

Mr Simpson said 2017 was a “record-breaking year” for Melbourne’s auction market, with 25 benchmarks broken.

These included highest number of auctions held in a year and highest number of auction sales in a year.

Real Estate Institute of Victoria president Richard Simpson said 2017 was a record-breaking year for Melbourne’s property market.

Mr Simpson attributed Melbourne’s stellar 2017 to “high levels of interstate and overseas migration, new government initiatives for first-home buyers and record low interest rates”.

He said the modest December quarter was the result of increased supply and reduced investor activity.

Melbourne’s median apartment price rose 1.2 per cent to $594,500 in the final three months of 2017.

And regional Victoria enjoyed a strong end to the year, with house prices up 2.6 per cent to a record $396,500 median. This marked a 10 per cent annual increase.

“Regional cities and towns within commuting distance of the CBD have certainly benefited from strong price growth in Melbourne, with a number of these areas now recording median house prices higher than those in the outer ring,” Mr Simpson said.