According to property expert, Terry Ryder, Regional Victoria remains one of the nation’s leading markets, especially on price performance. 84% of locations throughout Regional Victoria have growing prices, and more than 50% of those growth markets have seen more than 5% increases in their median house price over the past year.
CoreLogic has also confirmed the strength of prices in Regional Victoria. In a recent report published on June 1, it was stated that after solid increases in March and April, housing prices remained unchanged in May. In addition to this, Regional Victoria has remained resilient in terms of sales activity during the COVID-19 period so far.
According to Ryder, over the past 12 months, Ballarat has seen quite remarkable price growth with Ballarat Central up 24% and Lake Wendouree up 23%. Alfredton, Sebastopol, Brown Hills, and Redan have increased between 10% and 12%. Top performers in Geelong have been Drysdale up 19%, and Bell Park up 10%. In regards to locations with rising sales activity (which points to future price growth), the outstanding areas are Geelong, Bendigo, and Ballarat. All of these areas are benefiting from a growing interest from Melbourne buyers and investors from other parts of Australia.
Many people are continuing to make the move out of the big smoke and to a more relaxed lifestyle in regional areas of the state. The COVID-19 period has meant that many people are working from home, and even as we are slowly returning to the office, there will be plenty of people who continue to work from home, which is likely to enhance the likelihood of growth in regional areas.
“Regional areas in Victoria are very resilient, more so than capital cities, 2020 is a chance for these regions to shine even more than they have in the past,” says Dr. Mardiasmo from PRD Nationwide. She went on to say that regional cities are quite stable, and that these areas are likely to see growth this year, they won’t see a big loss like capital cities.
The City of Greater Geelong has provided strong growth markets for the past three years and continues to show resilience. It benefits from its ability to provide an affordable alternative to Melbourne, underpinned by a strong local economy and good links to the nearby capital city.
In Greater Bendigo, prices haven’t shifted during the COVID-19 period, and rather they are slightly growing. An added benefit for investors is that lower rent has meant that most tenants have been in a better position to make payments, even with changes to employment.
Real estate prices often remain strong long after the peak of the market in terms of sales activity. This is shown by the many individual suburbs and towns throughout Regional Victoria which have recorded median price growth above 10% in the past 12 months. We are seeing many studies being published that confirm that Regional Victoria boasts property investment opportunities that are not currently seen anywhere else in Australia.
https://www.pgaadvisory.com.au/ “Update on Regional Victoria” / Carly Tomadin