bubble bursts - front page herald sun today, page-22

Essendon property in a dive

Emily Portelli From: Herald Sun April 16, 2011 12:00AM


The median value of Essendon houses has dropped $200,000 in the past three months. Herald Sun

PLUMMETING house prices have hit hard in Melbourne's northern suburbs.

The median value of Essendon houses has dropped $200,000 in the past three months, from $1.1 million to $900,000.

Gavin McKenzie, 35, who bought an Essendon property off the plan almost two years ago, said he wasn't too worried.

"The last I heard, Essendon was the Toorak of the west," he said. "But the price drop doesn't worry me too much because I'll be living in it.

"I didn't buy it for the price value; I bought it for the lifestyle and location it offers."

Real Estate Institute of Victoria chief Enzo Raimondo said the residential market's performance this year and beyond would depend on the strength of the local economy.

"At this stage, the fundamentals are still strong," he said.

Others with strong annual growth were Langwarrin at $479,000 (up 19.4 per cent), Footscray's $650,000 (up 16.1 per cent) and Caroline Springs at $462,000 (up 16.1 per cent).