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Real estate in Melbourne has become more valuable over the last three months, new figures have revealed.
Statistics from the Real Estate Institute of Victoria (REIV) showed the median house price of a property in the city jumped 5.1 per cent to $561,500 in the March quarter, when compared with the preceding three-month period.
Enzo Raimondo, chief executive officer of the organisation, said there were various reasons why homes for sale in the Victorian capital are becoming a more attractive proposition.
"There are a number of factors increasing demand; increasing population growth, improved consumer confidence and overall affordability assisted by lower interest rates," he explained.
"High levels of residential construction, which has provided adequate supply, especially in the outer suburb housing market and inner-city apartment market will act to constrain price growth over the year."
According to Mr Raimondo, a rise in the number of buyers in the market during the December quarter has carried through to 2013, recovering some of the value lost over the last two years.
Not only was the median price of houses for sale higher, but sales volumes were also up in the three months to March - advancing around 6.4 per cent on the same period last year.
The inner and middle suburbs were highlighted by the REIV as being particularly popular, with strong growth in Brighton, Balwyn, Northcote, Balwyn North, Doncaster and Camberwell.
However, Mr Raimondo noted that the apartments market in Melbourne had been slightly more subdued, although it still experienced a 1.4 per cent boost in median prices over the quarter to $456,000.
A rise in the supply of inner-city unit stock was a major factor in this market, he added.
"The strongest demand for units and apartments was found in Toorak, Kensington, Kew, Cheltenham, Boronia and Bayswater."
The overall health of the real estate sector in Melbourne can be seen through recent auction results, the CEO continued, as clearance rates topped 69 per cent in the March quarter.
This was seven percentage points higher than the December quarter and an improvement of nearly ten percentage points when compared with March 2012.
Regional Victoria also experienced growth, achieving a 2.1 per cent increase over the quarter to a seasonally adjusted $311,500.
"Median prices increased by 3.2 per cent in Bendigo to reach $320,000 contrasting against a drop of 3.4 per cent to $280,000 in Ballarat and a 1.3 per cent drop in Geelong to $390,000," Mr Raimondo said.
