Beach bargains just a fairy story
Posted on | May 31, 2009 |
CASHED-UP Melburnians keen to snatch beachfront holiday homes from struggling vendors may be in for a big disappointment.
Plunging average prices for regional seaside homes don’t tell the full story.
Valuer-General Victoria sales figures released this month by Land Victoria show median house prices rose in a third of seaside towns!
From the end of 2007 to the end of last year, prices fell in 16 of 30 coastal towns and stayed level in four others!
Hardest hit is Port Fairy with a 34.6 per cent drop from $390,000 in late 2007 to $255,000 at the end of last year. Average house prices also fell dramatically in Blairgowrie, Barwon Heads, Portarlington and Rosebud West.
Anne Murphy of Stockdale & Leggo said Port Fairy sales during the summer were the best in the eight years she’s been there, saying the big drop in the median house price for Port Fairy is not because property values have fallen. Instead, figures have been skewed by tightly held, top-end properties being kept off the market.
“We’ve been recommending they delay selling because demand isn’t strong.”
People have owned houses here for 30 to 50 years. They’re kept in the family and passed down. Unless unforeseen circumstances such as a divorce occur, why sell in this market if you don’t have to?”
But Murphy says those Port Fairy vendors on the market are more realistic than past years.
“We’re not expecting a good summer season with the economy the way it is, but we’ve had extremely good results in the number of sales and most sales were within 10 per cent of asking prices.”
“In the past 18 months in our office there has been only one sale of a property that sold for less than the vendor paid for it!”
“Most properties here are about $450,000. You won’t get much for your money under $400,000.”
That still hasn’t stopped holiday-home hunters prowling Port Fairy.
“We’ve had people come in looking for that bargain,” “I personally don’t have any bargains but there are realistically priced properties and motivated vendors who’ll negotiate.”
A historic fishing port that is now a popular holiday and retirement town famed for its annual folk festival, Port Fairy is about 290km west of Melbourne.
Tags: bargains > beach > coastal > fairy > mark forytarz > melbourne > melburnians > port > towns > victoria
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