Regional Victoria price growth from commuter buyers

Melbourne affordability issues have been good news for some regional centres within commuting distance of Melbourne, according to the Real Estate Institute of Victoria.

"As the price of property in suburbs close to town has risen, buyers have looked further out," Enzo Raimondo, the REIV chief says.

"In towns such as Castlemaine and Kyneton prices have increased as families, priced out of Melbourne, have bought into the area.

"And generally the properties which have increased the most are those close to the station, although other factors such as character features and the quality of the home also have a bearing."

"While some people are lucky enough to buy and sell in a relatively short period and make money, REIV data shows that there are excellent capital gains to be made for those willing to hold a house in the longer term.

"For example, in 2008 the median price of a three-bedroom home in inner Melbourne was $740,000.

"By December last year it was $990,000. In outer Melbourne the median of $320,000 was $432,000 by December last year.

"And in regional Victoria the increase was from $240,000 for a three-bedroom home to $302,500."