25 Nov Regional Victoria Update
After the severe restrictions imposed on Victoria this year, it may come as a surprise that regional Victoria continues to be a national leader of price performance.
It has the highest percentage of price growth out of all market jurisdictions in Australia.
In the past 12 months, 92% of towns and suburbs across Regional Victoria have had growth in their median house prices. Most have increased by more than 5% and many have had double-digit growth.
Why has this growth been occurring?
It’s all part of the Exodus to Affordable Lifestyle according to property researcher Terry Ryder (hotspotting.com.au), a trend which contrary to many media reports did not arise out of the pandemic. It was well underway before 2020 and has been turbo-charged by the lockdown periods.
It’s a trend that first became evident with the rise of markets close to Melbourne three or so years ago, and continues to be a major force in Regional Victoria.
There are growth markets spread right across the state – from Portland, Warrnambool and Mildura in the west and north-west, to Wodonga in the north and the towns of East Gippsland and the Latrobe Valley in the east. However, there are three markets that stand above the rest:
Most of the suburbs of Ballarat (where we have been successfully sourcing properties for clients over the last couple of years) have had double-digit annual growth in their median house prices, including Redan (15%), Alfredton (11%), Ballarat Central (13%), Brown Hill (10%), Canadian (12%), Sebastopol (15%) and Mt Clear (10%).
While this beautiful Victorian city is a little further back in the cycle than Ballarat, it is now delivering growth at comparable levels. Market growth is led by Strathdale (17%), California Gully (15%) and Eaglehawk (13%).
White Hills, Strathfieldsaye and East Bendigo have all grown 10-11%. Numerous other suburbs have had 8-9% increases over 12 months, including Flora Hill, Kangaroo Flat, North Bendigo, Long Gully and Epsom.
The City of Greater Geelong was the first the regional cities to get on the growth path and has now had 3-4 years of rising prices. But many suburbs are still delivering good uplift in their median prices, led by Drysdale (10%), East Geelong (13%) and Newtown (10%).
Elsewhere, the Strathbogie LGA is a standout, with both Euroa (up 17%) and Nagambie (up 20%) showing exceptional growth.
In the far west of the state, Portland continues to rise, with its median house price up 15%. Warrnambool is another western centre with good growth, up 10% over 12 months.
Overall, Regional Victoria is one of many market jurisdictions which rubbish the general line in mainstream media that house prices in Australia are now recovering after a Covid downturn. In most locations across Australia, notably including Regional Victoria, there never was a decline.
What we’ve seen, and continue to see, is something approaching what commentators would call a property boom.
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Disclaimer: The content of this document is not to be considered specific advice. Your situation is specific and individual; as such, you should always consult a registered and qualified professional within a particular area of advice needed.