MILLION dollar-plus homes are no longer a rarity in the south-west as the property market rises on the wave of a massive boost in regional development projects.
Real estate agents throughout the district have more than 16 luxury homes listed on their inventories in the $1 million-plus price range.
Waterfront properties are attracting high prices in Warrnambool and Port Fairy, while several grand homes in large garden settings are listed in Hamilton and Camperdown.
The most expensive property on the market is a multi-storey, four-bedroom Ocean Drive residence overlooking Port Fairy's South Beach.
Completed in 2008, the home will set a new record for the town if it sells for its $2.95 million asking price.
"It is just a super property," real estate agency owner/director Michael Hearn said yesterday. "The banner has been lifted to the next level with the sophistication of finishes and architecture."
While many people have historically regarded the town's South Beach area as a poor cousin to the East Beach precinct, Mr Hearn said addresses were a personal choice.
He said the Ocean Drive house was one of a kind. "It's really new, it's high-end and it's got all the bells and whistles."
Mr Hearn, from Northeast, Stockdale and Leggo, said there were very few properties along East Beach that could compare in terms of contemporary styling, although some houses in the coastal strip "would push that (price) limit".
With properties in the sought-after coastal resort of Lorne now selling for up to $5 million, buyers are looking further away from Melbourne to find more affordable homes.
Mr Hearn said Port Fairy had become an extended destination for people. "Port Fairy is very different to Lorne. It's still a different type of client. This area has become like a high-end district social scene. It's its own little mecca."
Valuer Les Speed said $1 million would have been regarded as the "magical mark" for homes in Warrnambool four or five years ago.
Buyers were now much more willing to step over that figure for properties with river or ocean views in areas such as Hopkins Point Road and Riverview Terrace, or historic sandstone homes in central streets.
But Mr Speed warned owners of luxury homes to prepare for an extended selling period of 12 to 18 months as demand in the price bracket was limited.
Mr Speed, from Western District Valuation Services, said Warrnambool homes in the $200,000 to $350,000 range were selling well, particularly to investors and first-home buyers.
"To me it's a bit of a struggle once you get over the $450,000 to $500,000 mark unless there's something a bit special or unique."
His comments are confirmed by the latest data from Land Victoria which shows the median price of a house in Warrnambool was $279,000 at the end of June while Port Fairy's was $310,000.
The price boom comes as national property analysts predict the south-west will become a "stand-out precinct" for real estate investors with the regional centres of Warrnambool and Portland set to win from the economic spin-offs of alternative energy projects including wind, geothermal and wave power plants.
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