Fringe suburbs loses appeal as rates rise
House sales on the city fringe are down. HWT Image Library
HOUSE sales on the city fringe have plunged by up to 40 per cent in a year.
The median land price in growth suburbs such as Craigieburn has fallen by about $5000 to $220,000 in the past six months.
But the cost of an average house-and-land package has risen because buyers are still keen on building big homes, a survey by Oliver Hume Real Estate Group found.
In the six months to June, Melbourne's top 10 housing developments generated about 1050 sales, compared with 1400 at the same time last year. Top-selling growth suburbs this year have been Clyde North, Craigieburn, Cranbourne South and Mernda.
Oliver Hume spokesman Paul Ciprian said rising interest rates and a cut in first-home buyer subsidies had hurt the market.
"People are still inquiring, but they are not making a decision to purchase," he said.
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He said there had been discounting of city fringe prices, but it was unlikely to continue much longer.
The average cost of a house-and-land package rose by 2.8 per cent to $457,200 in the past six months. The City of Whittlesea, which includes Mill Park and South Morang, had the highest median price, $474,940.
Cardinia Shire, which includes the outer areas of Pakenham and Officer, came in lowest with $393,725, according to the Oliver Hume survey.
- John Masanauskas
- From: Herald Sun
- August 18, 2011 12:00AM
House sales on the city fringe are down. HWT Image Library
HOUSE sales on the city fringe have plunged by up to 40 per cent in a year.
The median land price in growth suburbs such as Craigieburn has fallen by about $5000 to $220,000 in the past six months.
But the cost of an average house-and-land package has risen because buyers are still keen on building big homes, a survey by Oliver Hume Real Estate Group found.
In the six months to June, Melbourne's top 10 housing developments generated about 1050 sales, compared with 1400 at the same time last year. Top-selling growth suburbs this year have been Clyde North, Craigieburn, Cranbourne South and Mernda.
Oliver Hume spokesman Paul Ciprian said rising interest rates and a cut in first-home buyer subsidies had hurt the market.
"People are still inquiring, but they are not making a decision to purchase," he said.
Start of sidebar.
He said there had been discounting of city fringe prices, but it was unlikely to continue much longer.
The average cost of a house-and-land package rose by 2.8 per cent to $457,200 in the past six months. The City of Whittlesea, which includes Mill Park and South Morang, had the highest median price, $474,940.
Cardinia Shire, which includes the outer areas of Pakenham and Officer, came in lowest with $393,725, according to the Oliver Hume survey.
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