RESIDENTIAL property in Footscray is in hot demand, according to figures from the Real Estate Institute of Victoria.

During last year, the suburb’s median price for all residential dwellings rose by 20 per cent, when compared to 2008.

Toorak was fourth, with a rise of 21 per cent and East Melbourne first, with a rise of over 40 per cent.

Tony Gerace, the director of Burham Real Estate, which has offices in Footscray and Seddon, said the REIV result was positive news for the area.

He attributed the rise to Footscray’s proximity to Melbourne, the area’s great services and major investment from local and state governments, at places like the Footscray railway station.

“Our office has experienced a massive demand for homes across the area, but mainly in Footscray and West Footscray,” Mr Gerace said.

He said publicity about the price increase had helped to attract more people to the area.

In contrast to the REIV results, applications for planning permits in Maribyrnong fell slightly for the 2008-2009 financial year, compared to the previous 12 months.

The total amount of applications for Maribyrnong received by the Department of Planning and Community Development fell five per cent to 819.

Most of the applications received were for extensions to existing dwellings, building between one to 10 dwellings on a piece of land and subdividing lots.