Melbourne’s house prices have regained more than half their losses of the recent property downturn.
Domain’s House Price Report for the September quarter says this is the quickest turnaround ever. 
Property prices rebounded by 4.1 per cent in three months to a median of $855,428 according to Domain
Melbourne’s property recovery began in the June quarter as a result of more confidence in the market following the election results as well as lower interest rates and loosening of lending criteria.
After peaking at the end of 2017, Melbourne’s median house price fell by 10.7 per cent throughout 2018 and the first half of 2019.
Domain senior research analyst Nicola Powell said the “remarkable” property market turnaround saw medians bouncing back by 5.5 per cent since the March trough.
“Melbourne house prices have rebounded for a second consecutive quarter and at a faster pace than in Sydney,” Dr Powell said.
Median house prices, Melbourne regions
The inner south’s house prices, in expensive suburbs including Port Melbourne and Elwood, were up by 5.6 per cent to a median of $1.23 million and the inner east, covering suburbs such as Hawthorn, Surrey Hills and Balwyn, was up 5.5 per cent to a median $1.34 million.
REGION
MEDIAN
QOQ
YOY
Outer East
$760,000
6.3%
1.3%
Inner South
$1,230,000
5.6%
-0.8%
Inner East
$1,340,000
5.5%
-0.7%
West
$598,000
3.1%
0.5%
Inner
$1,205,000
2.6%
7.1%
North East
$687,500
2.6%
-1.9%
South East
$635,000
1.6%
-0.8%
Mornington Peninsula
$685,000
1.5%
3.6%
North West
$611,500
-1.1%
-0.6%
Source: Domain House Price Report, September quarter 2019
Here’s what’s happened to apartments
Domain reports that Melbourne’s unit medians have also surged by 3.7 per cent to a record high median of $520,940.
It was the biggest jump of all capital cities for the quarter, with prices up by almost $20,000.
Median unit prices, Melbourne regions
REGION
MEDIAN
QOQ
YOY
North East
$524,999
14.1%
18.0%
Outer East
$565,000
7.6%
7.1%
South East
$460,000
5.8%
7.7%
Mornington Peninsula
$460,000
3.9%
2.2%
North West
$481,750
2.5%
7.1%
Inner
$540,000
1.8%
1.9%
Inner South
$606,000
0.7%
4.5%
West
$406,000
-1%
0.3%
Inner East
$604,250
-2%
3.6%
Source: Domain House Price Report, September quarter 2019
ANZ head of Australian Economics David Plank said he expected Melbourne’s recovery to continue into next year.
ANZ bank has forecast that the Sydney and Melbourne house prices will be growing at more than 12 per cent per annum by the middle of next year.
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Read more: propertyupdate.com.au