By Charlene Gatt
Prices soar despite economic woes
charlene.gatt@starnewsgroup.com.au
PROSPECTIVE home buyers will now need at least half a million dollars to buy into Footscray, Maribyrnong, Kingsville, Seddon or Yarraville, latest property figures show.
Median house prices for the June quarter show the five suburbs have surpassed the $500,000 mark, with Footscray prices jumping 22.4 per cent since March to become one of the fastest movers in the West.
Footscray unit prices also went through the roof, with a 60.2 per cent increase in the last quarter and an 87.5 per cent increase since June last year to hit $384,375.
Seddon (12.7 per cent) also enjoyed a healthy boost in prices to $505,000, while Maidstone remains the municipality’s cheapest suburb with a $482,000 price tag.
Maribyrnong has recorded a 36.5 per cent increase in the last three months to boast a median of $765,000 – but the figure is considered to be statistically unreliable because there were less than 30 sales during that period.
There were not enough sales data over the last quarter to calculate median house prices for West Footscray, Braybrook or Tottenham.
It is believed many vendors are selling before their houses go to auction because buyers are making offers above the reserve price.
Robert Larocca from the Real Estate Institute of Victoria said prices in the municipality indicated that many buyers were second and third-home buyers looking for affordability and proximity to Melbourne’s CBD.
He said many sales in suburbs like Deer Park were being driven by first home buyers keen to make the most of first home owner’s grants before they expire on 31 December.
“Suburbs quite close to the CBD (like Footscray) with great transport access and good entertainment options are comparatively undervalued compared to suburbs the same distance from the CBD in the east or the south-east.
“For people who are looking to move closer to the city, a place like Footscray is one of the cheaper places that they can do that.”
Mr Larocca said buyers would be spending at least $1 million to crack into the property market in Hawthorn, which is about the same distance from the CBD.
The next quarter is looking equally promising as people flock to Melbourne at a rate of 1800 to 2000 people a week, driving up demand for houses.
Low interest rates will also help people enter the property market.
“If we see the economy worsen, or unemployment rise, then that would severely impact upon the property market. If things remain as they are, then we’re expecting the spring (quarter) to be reasonably healthy,” Mr Larocca said.
