House price growth ‘soft’

(Tom Rumble/Unsplash)

Dwelling prices in the west are increasing slower than anywhere else in Melbourne, according to the latest data from CoreLogic.

Median dwelling prices in the west Melbourne statistical area, which comprises Brimbank, Melton-Bacchus Marsh, Wyndham, Maribyrnong and Hobsons Bay, increased by 0.8 per cent in the past 12 months.

The greater Melbourne median increase was 3.9 per cent with the outer east increasing most in the city at 6.9 per cent.

The national median increase was 8.7 per cent.

CoreLogic research director Tim Lawless said west Melbourne’s median dwelling value of $664,519 is the second lowest median dwelling value across the sub-regions of Melbourne, after Melbourne-Inner, where the median is weighed down by a large proportion of units.

“The softest growth conditions over the past 12 months have been centred within the regions with lower dwelling values, a trend that has been evident broadly across Greater Melbourne over the past 12 month period, where lower quartile dwelling values have risen by a smaller amount relative to the upper quartile of the market,” he said.

“Across Melbourne, the quarter of the market with the lowest dwelling values were up 2.5 per cent over the year compared with a 4.4 per cent gain in values across the upper quartile.

“Despite ongoing cost of living pressures, high interest rates, low consumer sentiment and affordability constraints, homes are still selling. Housing demand has been buoyed by high migration, but also tight rental markets that have probably incentivised renters to transition towards home ownership if they can afford to do so.”