Up, up and away – Super result to defy house price drop

Family-friendly Upwey has bucked Melbourne’s downward house price spiral and is the star performer in the hills, according to the latest house price figures.

The town recorded a 3 per cent increase in its annual median price last year and an 8.7 per cent median increase during the December quarter, according to recently released industry figures.

The December median house price in Upwey was $483,750 up from the September median of $445,000.

Upwey recorded fewer than 30 sales in the period, and other hills towns, including Belgrave and Monbulk, did not show up on the data because of their lack of sales.

Upwey has continued to achieve great results despite the overall Melbourne property market experiencing a decline in the past year. Annual median house prices in the Knox area dropped significantly, including Lysterfield (-32.5 per cent) and Ferntree Gully (-9.2 per cent).

And real estate agents say Upwey’s proximity to public transport, shops and its family-friendly feel are some of reasons behind its popularity.

Ranges First National Real Estate director Rik Rushton said a lot of people planning to buy a home in Rowville, Lysterfield and Mulgrave ended up buying in Upwey instead.

“I think you’ll see continued growth in Upwey because of its proximity to everything,” Mr Rushton said.

Mr Rushton predicted this year would see the market stabilise and would be a great time to buy.

“Last year was probably the correction the market had to have,” Mr Rushton said.

“We found there was about a 5 to 7 per cent drop in median house prices, but that was on the back of double-digit growth for the past five years.”

First National Real Estate Ranges

Source:  Free Press Leader, 25 January 2012