Housing prices rising at rapid rate

Maribyrnong and Hobsons Bay housing values continued to climb over the March quarter. (Supplied)

Goya Dmytryshchak

Australian housing prices are rising at the fastest pace in 32 years off the back of a COVID-induced decline, with Maribyrnong and Hobsons Bay values continuing to climb over the March quarter.

CoreLogic’s national home value index rose 2.8 per cent in March – the fastest rate of appreciation since October,1988 (3.2 per cent).

Melbourne’s housing values surged by 2.4 per cent in March and 4.9 per cent for the March quarter.

In Maribyrnong, values rose 1.5 per cent in March, 2.4 per cent for the March quarter and 4.2 per cent in the 12 months to March 31. The median dwelling value was $831,573.

In Hobsons Bay, values rose 1.3 per cent in March, 3.5 per cent for the March quarter and 2.9 per cent for the 12 months, with a median value of $756,626.

CoreLogic’s head of residential research Eliza Owen said house values were growing faster than unit values.

“Both Hobsons Bay and Maribyrnong continued to rise in value over the March quarter, off the back of a brief, COVID-induced decline from mid-to-late 2020, and the start of a recovery trend through the December quarter,” she said.

“However, growth rates were below the result for the Greater Melbourne metropolitan – 4.9 per cent.

“The relatively subdued performance in the regions is likely the result of slow unit value growth.

“Unit values increased just 0.7 per cent in the March quarter, compared with 3.6 per cent across houses in Maribyrnong.

“Across Hobsons Bay, unit values increased 2.8 per cent compared with a 3.9 per cent lift in house values.

“This reflects a broader trend over the past 12 months in which houses have been preferable to units.

“The broader economic recovery across Australia, combined with record low mortgage rates and increased consumer confidence, should continue to see a steady rise in values across the regions through 2021.”