Published on July 27th, 2012
REIV: Melbourne’s growing suburbs are not an extraordinary trend
The Real Estate Institute of Victoria has laid rumours that the large number of properties for sale in outer suburbs of Melbourne is concerning to rest.
According to the real estate body, concerns put forward in a recent Sunday Age report are unfounded.
The newspaper revealed that there are numerous properties for sale in Melbourne's outer suburbs, but according to the REIV, this does not necessarily mean that anything concerning or out of the ordinary is occurring.
In fact, the latest figures indicate that Melbourne's growth suburbs are changing and shifting – and as the city continues to expand, new areas are being thrust into the spotlight.
"The fact is that the city has always had growth suburbs with lots of homes for sale," the REIV asserted. "40 years ago, it was suburbs such as Fawkner, and today, it's the likes of Doreen".
Pointing out that the development cycle is subject to many of the same peaks and troughs observed in the broader real estate market, the REIV revealed.
The growing suburbs and the increased number of homes for sale are indicative of the pipeline of supply that is required to ensure that demand for housing is met in an affordable way.
In fact, house price data published on July 13 shows that Melbourne's median house price has remained stable in the June quarter, remaining at $535,000.
According to REIV chief Enzo Raimondo, the market is now in a period of stability "marked by low activity" after price falls in 2011.
"The median price has fallen 5.3 per cent over the past 12 months but, as the overall median has not changed in the past six months, this indicates that the market has plateaued," he said.