Melbourne’s real estate market was the big winner of 2010, seeing more growth than any other Australian capital city – despite a ‘softer’ second half of the year.
The latest RP Data-Rismark Hedonic Home Value Index puts our median dwelling price at $505,000 (includes both houses and units).
This means Melbourne’s values grew by 8.4% over the year, a strong performance compared to the Australian capital city average of 4.7%. Like the other capital cities, Melbourne enjoyed most of this capital growth in the first quarter of 2010. By way of comparison, Sydney (6.6%) and Darwin (4.8%) were the second and third strongest performers of 2010.
Rismark managing director Christopher Joye says four official interest rate increases, plus an extra hike imposed by the banks, “snuffed out capital growth during the remainder of the year”.
Despite lower auction clearance rates and the November interest rate rise, Melbourne also led the way in the final quarter of the year, recording 1.1% capital growth (seasonally adjusted) in the three months to December. Value drops for all the other cities brought the capital city average down to just 0.4 per cent.