Melbourne Records Highest Annual Growth of All Capital Cities

Melbourne houses recorded the highest annual growth rate among the state capitals, leaping 18.5 per cent to exceed the half-million dollar mark for the first time. Big gains for suburbs led by East Melbourne, Black Rock and Malvern, as well as north-suburban Dallas, helped the city notch up a 6.4 per cent increase in the December quarter alone, to leave the median price at $517,756 by year’s end.

 

A revival in sales of luxury homes has helped drive nationwide house prices to their biggest annual gain in six years, with all but Perth among the capital cities to end 2009 at record highs.

 

After posting a 4.8 per cent gain in the December quarter, average prices nationwide clocked up an average increase of 12.1 per cent in 2009, Australian Property Monitors said.

 

“While the First Home Buyer sector kept the overall market afloat through the end of 2008 and the first quarter of 2009, it’s been the activity at the top end of the market that has driven the extraordinary overall result for 2009,” said APM economist Matthew Bell.

 

“Activity in the more expensive suburbs has been driven by the surprisingly resilient jobs market experienced in late 2009 and a strongly rising share market,” Mr Bell said. APM is owned by Fairfax Media, publisher of this site.