Slowdown in south-west real estate prices after boom

PROPERTY prices across south-west Victoria have eased after a stellar rise in the past decade with some centres showing rises of more than 100 per cent.

Winter weather hasn’t dampened the enthusiasm of local house hunters, with real estate purchases increasing in the colder months during the past decade.

Winter weather hasn’t dampened the enthusiasm of local house hunters, with real estate purchases increasing in the colder months during the past decade.

According to the latest Victorian Valuer-General’s report the median house price in Warrnambool in 2003 was $230,000 and rose to $325,000 by the end of last year — that’s a 40 per cent rise at an average 3.5 per cent a year.

It flattened out to a 3 per cent rise last year, but according to the Real Estate Institute of Victoria sales so far this year have been strong with the median house price rising 15.2 per cent for the March quarter.

Warrnambool’s vacant land prices in the past decade rose 105 per cent from $74,000 to $152,000 while apartment prices rose 43 per cent from $182,000 to $260,000. 

On the western fringe Dennington performed better with 67 per cent growth for the decade at 5.3 per cent annually from $191,500 to $320,000 last year and an indicative $370,000 so far this year.

Its vacant land price rose 126 per cent from $53,000 to $119,500 for the decade.

Statistically one of the biggest rises in country Victoria was at Edenhope where values leapt from $62,000 in 2003 to $160,000 last year — up 158 per cent at an annual 9.9 per cent growth.

On the other side of the scales Halls Gap experienced one of the biggest falls with values dropping 24 per cent in a decade at an annual growth rate of minus 2.8 per cent. The median house price was $244,000 in 2003, but last year was $184,500 which was down 21 per cent on 2012.

Port Fairy’s house prices grew 52 per cent from $262,500 in 2003 to $394,000 at an annual rate of 4.3 per cent despite a minus 2 per cent fall last year while its land values rose 79 per cent to $175,000 over 10 years.

Port Campbell’s prices surprisingly finished last year at a $317,500 median — exactly the same as 2003. Preliminary sales figures this year show it had fallen to $215,000.

Portland was also a good performer with 54 per cent growth for houses in 10 years from $152,500 to $235,000 at an annual rate of 4.4 per cent while its vacant land values soared 183 per cent to $85,000.

Elliminyt performed strongly with a 92 per cent rise and 9.7 per cent annual growth from $172,000 to $330,000 while Colac’s values rose 49 per cent from $152,000 to $226,500 at 4.1 per cent annually.

Coleraine was also popular with values jumping 95 per cent from $60,000 to $117,000 to produce a 6.9 per cent annual growth while further along the Glenelg Highway Casterton was flatter at 22 per cent growth in the decade at two per cent a year with prices going from $80,000 to $97,500 with an 11 per cent fall last year.

Camperdown’s values rose 91 per cent at 6.7 per cent annually from $115,000 to $220,000 with last year’s median rising 20 per cent on 2012 while vacant land soared 270 per cent at an annual average 14 per cent from $25,000 to $92,500.

Cobden’s house values fell 13 per cent last year to $162,500 after a 35 per cent rise at 3.1 per cent annually from $120,000 in 2003.

Terang’s values rose 60 per cent in 10 years from $103,000 to $165,000 at 4.8 per cent annually.

In Timboon values rose 51 per cent at 4.2 per cent annually from $122,000 to $184,000, but fell 14 per cent last year.

Heywood prices rose 66 per cent at 5.2 per cent annually from $85,500 to $142,000, but last year fell 7 per cent.

Mortlake rose 50 per cent at an average 4.1 per cent annually from $86,500 to $129,500, but last year fell 15 per cent on 2012.

Hamilton values rose 27 per cent for the decade at 2.4 per cent annually from $150,000 to $190,000 and vacant land was up 116 per cent to $92,000.

Koroit experienced a 45 per cent rise at an average annual 3.8 per cent going from $190,000 to $275,000 while vacant land prices jumped 138 per cent from $50,000 to $119,000.

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