One billion dollars a week on Melbourne property in 2014

Photo Source: abc.net.au

Key points

• Over one billion dollars a week was spent on residential real estate last year
• Brighton recorded the highest spend, $842m
• Glen Waverley recorded a $233m rise
• In 2014 a total of $53.7b, over one billion dollars a week, was spent on Melbourne residential real estate.
• In 2014 a total of $53.7b, over one billion dollars a day, was spent on Melbourne residential real estate.

This is an increase from the $52.9b in 2013 and $43.8b in 2012, reflecting the overall growth in the market over the last few years. It is worth noting that last year was still slightly below the all time record of $54b in 2010.

The citywide changes are also reflected at a suburban level.

Whilst the top 10 Melbourne suburbs ranked by the total spent on residential real estate did not show a lot of change between 2013 and 2014, the amount spent did.

Photo Source: CoreLogic RP Data

Top of the list was Brighton. Last year an average of $2.3m was spent every day in Brighton property purchases and $378,213 more every day than the previous year.

This pushed the entire value of sales from $700m to $841m. Brighton may have a higher value of sales than any other suburb, however the increase was dwarfed by the rises recorded in Melbourne, Glen Waverley, Kew and Toorak.

In 2013 for instance, $1.49m was spent on units in the suburb of Melbourne and this rose by half a million dollars a day to $2.05m. This rise is partly due to the increased prices being paid and partly the increased construction.

Glen Waverley recorded the most significant difference. Over the course of the year $233m more was spent on houses which in turn pushed the median house price up from $807,000 to $970,000. Neighbouring Mount Waverley also saw a significant rise of $311,747 on a daily basis.