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What’s Happening In The Inner Suburbs?

By Jamil Allouche

Melbourne's inner suburbs are no doubt a highly sought-after area of the city.

If you're interested in property in Brunswick, an inner-north suburb of Melbourne, then you might want to keep an eye on the house price index for the area.

In August, the house price index for Melbourne increased by 1.9 per cent up to 142.9, according to the Real Estate Institute of Victoria (REIV).

That's a 5.2 per cent increase from a year ago. What does this mean?

With the price index for the inner suburbs increasing at a slightly greater rate than the middle and outer suburbs, it's this inner area that is likely to reach its peak first.

The inner suburbs are currently only 0.5 per cent below their 2011 peak, while middle and outer suburbs are at 2.6 and 2.1 per cent below their peak respectively, still having a little way to go.

Enzo Raimondo, chief executive officer of REIV, said house price indices are likely to continue to improve throughout the year.

"This is underpinned by a range of positive indicators such as improved sentiment, higher clearance rates, lower interest rates, and an increase in transactions," he said.

"It may only be a matter of time before peak prices are reached again, starting with the inner suburbs."

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