Amcor paper mill’s demolition sparks Alphington house price hike

THE former Amcor paper mill’s demolition has helped fuel a massive price hike in Alphington property values, according to a real estate agent who sells in the area.

The latest Valuer General's report shows median house prices have surged in Alphington, which according to Nelson Alexander Northcote partner and auctioneer Tom Alexiadis is due partly to the closure and demolition of Amcor. Picture: Josie Hayden

THE former Amcor paper mill’s demolition has helped fuel a massive price hike in Alphington property values, according to a real estate agent who sells in the area.

According to the Valuer General’s latest figures, the median house price in Alphington surged 26 per cent between September 2013 and September 2014, from a median of $1,075,000 to $1,355,000.

Nelson Alexander Northcote partner and auctioneer Tom Alexiadis said more buyers became interested after the paper mill’s closure in 2013, followed by demolition works and plans for a 2700 unit development, shopping complex and community complex.

“The paper mill was an eyesore, known for spreading bad smells but once people realised it was going they realised the area would get better and better,” he said.

“With more people coming into the area there’ll be better services and more restaurants and cafes.”

The Valuer General’s report is generally considered to be the most accurate guide to the real estate market because the data is compiled using information lodged every time a property sale is completed.

The report showed Fairfield also recorded massive median growth in the September quarter, moving into the $1 million club with a 22 per cent jump over the quarter, which was also reflected over the year, with prices rising from $900,000 to $1,100,000.

Prices also leapt in Thornbury, rising more than 8 per cent in the quarter and a huge 26 per cent over the year from September 2013 when the median price was $695,000, increasing to $877,800 a year later in 2014.

Mr Alexiadis said Thornbury had more or less caught up with Northcote, which had a median price of $879,000 in September 2014, up from $800,000 in September 2013.

“People are no longer seeing a distinction between Northcote and Thornbury — they are on par,” he said.

“Thornbury has seen a huge change recently with lots of new cafes and restaurants opening up along High St.”

Mr Alexiadis said Preston was likely to become the new frontier and also Reservoir up to Edwardes Park Lake before period homes gave way to brick veneers.

The Valuer General’s figures show Preston’s median price grew just over 3 per cent in the September 2014 quarter to $700,000 and was up almost 9 per cent from the $642,800 median in September 2013.

Reservoir made smaller gains, growing just 0.9 per cent over the September quarter and 3.2 per cent over the year from $518,500 to a $535,000 median price.

Mr Alexiadis said he expected price growth to continue this year but at a slower rate than last year.