PROPERTY hot spots in south-west Victoria are off the boil, but the region is expected to escape a predicted bubble burst for metropolitan markets.
Warrnambool, Portland and Timboon are the region's leading lights according to the latest Valuer-General's report on housing property sales for the 15 months to the end of the March quarter which show a general easing off from the boom times, particularly in the last quarter.
House prices in Port Campbell, Peterborough and Mortlake, which had experienced soaring price rises driven mainly by speculation around energy project, projects dropped back as did Hamilton.
Port Fairy values also tapered off with the median house price rising by only 1.5 per cent between January 2009 and March 2010 with a one per cent slump in the last quarter.
Prices for units in the town also fell with a 40.6 per cent decline over the 15 months and 44 per cent in the recent March quarter with $200,000 listed as the median price compared with $336,500 early in 2009.
However, despite easing in values the median Port Fairy house price of $345,000 is still higher than Warrnambool's $307,000 in the March quarter after a 10.6 per cent overall growth during the previous 15 months.
Port Campbell's median house price in March last year was $240,000, but by March this year it had fallen 27 per cent to $175,000 while further west along the coast at Peterborough the median fell 37 per cent from $361,500 to $225,000.
In Mortlake the median house price went from a peak of $197,500 to $140,000.
On the other side of the scale Portland's median house price rose 21.8 per cent in the 15 months to March from $182,800 to $222,500 and Timboon's jumped 65 per cent from $136,300 to $225,000.
Warrnambool-based chairman of the Real Estate Institute of Victoria's Otway division, Bruce Ludeman, said the district was well positioned to handle any predicted bubble burst.
"This is a strong regional centre with new energy projects, strong rural industry, good rainfall, the ocean and tourism," he said.
"There's been a slight easing, but nothing to worry about. Sales have eased off a bit with winter, the federal election and an approaching state election.
"The slump in the March quarter could be attributed to savage interest rate increases and an easing back of first-home buyer's assistance."
Prices for vacant residential land were up. Warrnambool jumped 7.4 per cent for the 15 months from $130,300 to $140,000 and Dennington jumped 66.7 per cent from $75,000 to $125,000.
Koroit’s median land price soared 62 per cent from $80,300 to $130,000, Hamilton’s rose 50 per cent from $80,000 to $120,000, Port Fairy’s rose 10.7 per cent to $155,000 which Portland’s was up 6.8 per to $79,000.
Colac’s land price rose 18.5 per cent to $99,500.
Mailor’s Flat is obviously becoming more popular as Warrnambool expands with its median land sale jumping 49 per cent from $104,000 to $155,000.
Peterborough’s price fell slightly by four per cent to $120,000.
For the well-heeled keen to join the Lorne community there was some relief with a 28 per cent fall over 15 months in the median price of vacant land, from $500,000 to $359,00.
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