house prices booming in melbourne

House prices booming in Melbourne

* Lucie van den Berg and Katie Bice
* From: Herald Sun
* November 23, 2010 12:00AM



Auction

House prices in Melbourne have shot up 145 per cent in the past four years. Picture: Andrew Henshaw Source: Herald Sun

IT'S no wonder Melburnians are struggling to buy a home - the value of houses has shot up by 145 per cent in just four years.

The average value of a house in the Local Government Area of Melbourne increased from $284,600 in 2005 to $697,500 last year.

Queenscliffe and Port Phillip municipalities experienced the second and third biggest rises in property values during this period, according to the Australian Bureau of Statistics.

REIV spokesman Robert Larocca said property valuations were a good indicator of the real estate market, but warned home owners they were not set in stone.

"Home values may have gone up, but so has the one that you would move into and then you are looking at stamp duty," Mr Larocca said.

"The council valuations are struck to apportion how rates are paid ... the actual sale is influenced by how many other properties are on the market, when you are seeking to sell your home, and the overall market."

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He said the massive increase in property prices reflected the number of new high-end houses built in recent years.

Queenscliffe properties had the highest average value outside the capital city in 2008-09.

Property values rose 83 per cent to $515,500.

"It's a very cute seaside town. Like most parts of Melbourne that have bay frontages the prices have increased, but it is a smaller area and it's a bit more exclusive," Mr Larocca said.

Loddon, situated in Victoria's "Golden Triangle", is no goldmine for home owners.

It was the only LGA where property values dropped.



TOP 5 RISES IN PROPERTY VALUES
AREA 2005 2009 INCREASE
Melbourne $284,600 $697,500 145%
Queenscliff $280,900 $515,500 83%
Port Phillip $342,400 $586,600 71%
Stonnington $475,500 $811,500 71%
Yarriambiack $154,900 $248,200 69%