Australian property prices in Melbourne are on the rise after an increase in the last quarter of 2012.
The Real Estate Institute of Victoria (REIV) reported an increased demand for housing in Melbourne at the end of 2012, with the average house price going up by 7.8 per cent and the average apartment price going up by 4.2 per cent.
REIV’s figure shows the biggest growth in the market across three months since the marker peaked in 2010.
Chief executive officer of REIV, Enzo Raimondo, credits the rise in housing demand to interest rate cuts, more buying over the Christmas period and more confident consumers in Victoria. He said that a 16 per cent increase in sales underpins the house price increase and that if consumers continue to gain in confidence then this could encourage sales values through 2013.
Among the areas in Melbourne with the highest demand were historically expensive suburbs such as Kew, Essendon and Fitzroy North.
Posted by Steve Douglas
