Enzo Raimondo details the rise in Median Prices for Victoria, Australia and the potential impacts of the Federal Election and interest rates. REIV CEO Enzo Raimondo said today that the Melbourne median house price increased by 3.9 per cent to $431,000 in the September quarter. "Over the past year the median price in Melbourne has increased by 13.1 per cent or $50,000, the largest dollar increase we have seen in a twelve month period. This confirms the worsening affordability of housing in much of Melbourne. "The high demand for affordable properties has been highlighted by the fact that house values in the more affordable segment of the market increased more than any other segment. "Unlike previous quarters where the largest increase has been confined to the upper quartiles, values of the lower quartile (bottom 25 per cent of the market) increased 5.1 per cent to $310,000 in the quarter making it even harder for first home buyers to get into home ownership. "Sunshine is an example of an affordable suburb which has increased in value dramatically, its median increasing by $95,000 in three months from $240,750 to $335,000 or 25.9 per cent. "In the more expensive suburb of Malvern we saw the highest appreciation in the quarter, its median increased by 44 per cent, up $550,000 from $1,232,500 to $1,780,000. "There are now 15 suburbs with a median price in excess of a million dollars. New entrants to the list are inner east and bayside suburbs, Camberwell, Beaumaris, Glen Iris, Malvern East and Brighton East. "The popularity of higher density living was shown by the increase in the median price of a unit or apartment by 5.1 per cent in the quarter from $350,000 to $367,750, in excess of that for detached homes. "Units and apartments continue to be popular with bayside suburbs, Beaumaris, Black Rock and Brighton topping the list of the most expensive locations. "With 4 weeks until the federal election it is imperative that both major parties declare their position on housing affordability and outline strategies which will provide real solutions to one of the most important socio-economic challenges of recent times. "From the REIV's point of view a range of policies including greater cooperation between all levels of Government, early access to voluntary contributions to superannuation and more housing stock being built, not just on the cities boundaries but where people want to live, may help redress this problem, "Mr Raimondo concluded.