Victoria’s housing market is making headlines!


Victoria’s housing market has experienced a significant resurgence, adding $60 billion in value, bringing its total worth to $2.55 trillion.

This surge has validated expert claims that the property market is rebounding, and the state is approaching the record-high of $2.59 trillion set in March 2022 when interest rates were at just 0.1 percent.

According to Ray White chief economist Nerida Conisbee, this sharp uptick signals the end of a property market correction driven by interest rate hikes. Australian Bureau of Statistics data reveals that the total value of dwellings in Victoria rose from $2.49 trillion in the March 2023 quarter to $2.55 trillion in June. Conisbee believes that interest rates have likely reached their peak, influencing buyer confidence and driving up property prices, which are expected to rise even further in September.

Michele Bullock, first female RBA governor
Team doing a review

Several factors contribute to this resurgence, including migration and a scarcity of new homes, which are pushing more buyers into the established housing market. Despite a downward trend in figures until March 2023, the $60 billion increase in data released recently signifies a remarkable turnaround.

Conisbee points out that prices did not decline as much as expected, even with rapid interest rate increases, contributing to the relatively low impact on the total value of dwelling stock. She notes that some homes were completed during this period, but construction challenges limited new supply.

Quentin Kilian, CEO of the Real Estate Institute of Victoria (REIV), suggests that the recent surge represents more of a stabilization in housing values than a peak. He predicts a continued upward trend in the coming years, albeit at a slower pace compared to the rapid growth seen since June 2020. Kilian attributes the growth in housing valuations primarily to a chronic housing shortage and an influx of returning expats.

Kilian emphasizes the need for increased housing supply to address the undersupply issue and achieve organic growth and stability in dwelling values. He believes that without this, the market will continue to experience sharp peaks and troughs due to a lack of supply.


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