By Charlene Gatt
HOUSE prices have plummeted across Maribyrnong as buyer uncertainty cripples the property market.
The Real Estate Institute of Victoria’s quarterly median figures for September 2011 showed a 17 per cent drop in house prices for both Footscray and Maribyrnong, while West Footscray experienced an 11 per cent decrease.
Houses and units in Maidstone, Seddon and Yarraville recorded more modest price decreases, while Braybrook was the only suburb to record an increase, with the median house price jumping from $434,500 to $470,000.
There were no sales figures for Tottenham or Kingsville.
REIV CEO Enzo Raimondo said concerns about the international economy and negative consumer sentiment had translated into reduced demand and a lower median across Melbourne.
“This serves as another reminder that the state of the housing market is directly linked to the health of the economy,” he said.
“Despite evidence that the local economy continues to outperform many of our trading partners, we are now experiencing a soft housing market.
“The recent trend of reduced demand in the more expensive segments of the market has continued. The effects of the surge in population between 2005 and 2010 are still bolstering demand in the more affordable suburbs.
“Across Melbourne this means that the outer suburbs have recorded an overall better result than the inner ones have.
“The lesson from the GFC, when the median fell by 14 per cent, is that the market will remain subdued until confidence improves in the economy or there is stimulus in the form of lower interest rates.”
In the West, Wyndham Vale and Caroline Springs bucked the trend to record sales growth over the past quarter.
