The boom is over

MORNINGTON Peninsula’s property market has taken a dive following a long period of solid growth.

Prices in many towns increased in the year to March 2011.

But it was during the last quarter where falls of more than 20 per cent were evident.

According to research by Australian property database RP Data, units bore the brunt of the falls, with Mt Martha units dropping 21 per cent in value from December 2010 to March 2011.

Rosebud units fared a little better, dropping 16 per cent, while houses in Blairgowrie dropped 11 per cent.

Mt Eliza homes dropped 7 per cent, while Rye homes dropped 4 per cent.

However, Tootgarook homes defied the trend, rising 11 per cent in the same period.

Sorrento house prices increased by 7 per cent.

Median house prices in Flinders dropped by almost 20 per cent, but increased by 32.6 per cent in Cape Schanck and 20 per cent in Shoreham.

Real Estate Institute of Victoria auction figures revealed a drop in peninsula clearance rates over the past 12 months.

While the number of properties listed for sale that actually sold remained a healthy 80 per cent in Rosebud West, it dipped below 30 per cent in Dromana.

In Blairgowrie, McCrae, Mt Eliza, Mt Martha and Safety Beach, the figure was below 50 per cent.

RP Data’s senior research analyst, Cameron Kusher, said the market’s softening was mainly due to extraordinary growth in values since 2007.

“There is certainly some potential for further value falls, although we don’t think they will be substantial,” Mr Kusher said.

Hocking Stuart Rye’s general manager Mal McInnes said it was a buyers’ market now.

“Many vendors have adjusted their expectations, but buyers are still buying,” Mr McInnes said.