Bacchus Marsh property prices are experiencing the biggest rise in Melbourne, according to new data.
With many areas of Melbourne seeing a rise in house prices in recent months, Bacchus Marsh has experienced median house price rise of 9.9 per cent, according to Domain’s House Price Report for the September quarter, released last week.
The rise was the largest of any Melbourne suburb, with Bacchus Marsh rising to a new media house price of $527,500.
Fellow western suburb Cairnlea had the second biggest rise in the state, lifting its median house price 6.6 per cent to $780,000, while Darley was up by six per cent to a median of $600,000, making up the top three rises.
The recovery follows a 10.7 per cent drop in median house prices for all of Melbourne from the peak in December 2017 to the trough in March, an average fall of $94,391.
Domain research analyst Eliza Owen said the results showed Melbourne’s property market cycle, and rises or falls in prices, started in the inner suburbs.
“Melbourne has a very distinct growth pattern, which starts in the inner east and finishes on the fringes,” Ms Owen said.
As outer suburbs had peaked later than inner Melbourne, she said home owners might see some future price falls, but they would not be as significant as those in the inner suburbs.
While the news is good for current homeowners, things would now be tougher for those looking to get into the market, especially first-home buyers, AMP chief economist Shane Oliver said.
Dr Oliver predicted house price rises would continue in the short term before slowing. Australia’s economic uncertainty and lack of consumer spending would have an impact on house sales, he said.
“The pace of the increase will slow down – not straight away but in the next six months,” Dr Oliver said.