Melbourne house prices have reached record levels after a successful three month period on the property market.
The city’s median house price jumped nearly nine per cent to $595,000 in the September quarter, figures from Real Estate Institute of Victoria (REIV) suggest.
The median house price was $35,000 higher than the previous peak of $559,000, recorded in December 2010.
REIV chief executive officer Enzo Raimondo said buyers are taking advantage of low interest rates resulting in the increased demand.
“Sustained growth in previous quarters has also instilled further confidence in the property market in Melbourne,” Mr Raimondo said.
He warns that this level of growth may not be sustained over an extended period of time.
Melbourne’s units and apartments reported steady growth of 4.8 per cent, to $481,500. Homes in Balwyn recorded the biggest price hike, with a 26.8 per cent rise to $369,600 in three months.
Suburbs with the strongest growth in median prices this quarter were Balwyn, Brighton East, Ascot Vale, Balwyn North, and Footscray.
The median house price in regional Victoria saw a 0.8 per cent increase to $308,000 with Geelong, Ballarat and Bendigo the key regional centres for buyers.