Ballarat ranked as Victoria's top regional performer with 12 percent 2018 house price growth: REIV

Ballarat ranked as Victoria's top regional performer with 12 percent 2018 house price growth: REIV
Ballarat ranked as Victoria's top regional performer with 12 percent 2018 house price growth: REIV

Ballarat was the top major city regional performer with 12 percent annual house price growth in 2018, according to the REIV.

It outperformed Greater Geelong which recorded 10.8 percent annual house price growth.

Ballarat is Victoria's third largest precinct, only one hour from Melbourne.

Ballarat has a population of just over 100,000 people, with around 27 percent in rental accommodation, with investors attracted yields averaging 4.4 percent on houses and 5.2 percent on townhouses and units.

Despite the well-documented cooling of inner Melbourne house prices in recent months, Ballarat has been on the radar of buyers with low land prices, from $130,000 to $150,000, and full turnkey house & land packages starting from $410,900.

The strong history of Ballarat provides a sought after niche with period housing, particularly 1900 Victorian-era dwellings.

Ballarat has the benefit of an express train service, with those who commute to Melbourne seeing the trip take around 60 minutes. 

Increasing numbers of new residents to the city has been fuelling demand with Ballarat experiencing 28 percent group within the past 24 months due to growing employment opportunities and the regional lifestyle appeal it offers to many city dwellers.

There's been a heightened infrastructure spend with the Victorian Government spending billions including rail upgrades, relocation of government departments and the hospital refurbishment.

Regional Centres Dec-18 Quarter Quarterly Change Sep-18 Quarter Annual Change
Greater Geelong $555,000 1.80% $545,000 10.80%
Greater Bendigo $352,250 1.80% $346,000 2.10%
City of Ballarat $386,500 1.70% $380,000 12.00%

Ballarat is made up of many sub-markets, starting with Ballarat Central.

BALLARAT CENTRAL Lower Quartile: $255,750 Dec-18 Median: $308,000 Upper Quartile: $475,000 Quarterly Change: 11.60%

LAKE WENDOUREE Lower Quartile: $325,000 Dec-18 Median: $500,000 Upper Quartile: $550,000 Quarterly Change: 12.00%

BALLARAT NORTH Lower Quartile: $201,000 Dec-18 Median: $265,000 Upper Quartile: $299,000 Quarterly Change: -4.30%

BALLARAT EAST Lower Quartile: $237,000 Dec-18 Median: $275,000 Upper Quartile: $310,000 Quarterly Change: -0.50%

WENDOUREE Lower Quartile: $167,750 Dec-18 Median: $199,000 Upper Quartile: $337,000 Quarterly Change: -3.40%

ALFREDTON Lower Quartile: $240,000 Dec-18 Median: $288,750 Upper Quartile: $332,000 Quarterly Change: 8.30%

REDAN Lower Quartile: $228,000 Dec-18 Median: $260,975 Upper Quartile: $310,000 Quarterly Change: 3.40%

SEBASTOPOL Lower Quartile: $203,000 Dec-18 Median: $231,000 Upper Quartile: $259,000 Quarterly Change: 0.40%

BROWN HILL Lower Quartile: $255,000 Dec-18 Median: $284,000 Upper Quartile: $295,000 Quarterly Change: 0.60%

MOUNT CLEAR Lower Quartile: $242,500 Dec-18 Median: $275,000 Upper Quartile: $314,556 Quarterly Change: 0.00%

CANADIAN Lower Quartile: $241,000 Dec-18 Median: $279,500 Upper Quartile: $330,000 Quarterly Change: 3.50%

Source REIV

In mid-2018 the Urban Land Development residential report looked at the prestige market noting it "probably kicks in around the $1 million dollar mark, but things really start to get interesting north of about $1.5 million."

These properties are generally situated in Ballarat Central, Lake Wendouree and Invermay with a smattering in Soldiers Hill, Newington and Buninyong.

In general terms, $1 million to $1.5 million in Ballarat at present will buy you a large fully renovated period dwelling on a block of circa 1,000 square metres.

"If you have more than $1.5 million to $2 million to spend you will be able to get something on Lake Wendouree," the HTW valuer noted.

"It is at this level that the market is considered ultra-prestige."

"The market is being traded mostly by local high net worth individuals and people new to town who have come from markets where the quantum of cash perhaps doesn’t stretch so far. In general purchasers seem to seek high quality locations, with good sized lots and renovated period dwellings."

HTW noted the main drivers of the market are the economic success of Ballarat as a centre.

"This can be measured by population growth, employment growth and perhaps even tourism growth.

"These three measures have performed very well in the past four years and as a result the prestige market has also shown significant growth.

"With further growth in these areas forecast as well as additional local and state government spending, we consider the future growth prospects for the market to be strong.

A Ballarat Central four bedroom sold for $935,000 in April (pictured below).

Positioned at 217 Windermere St, the Victorian home comes with four bedrooms, open plan kitchen,  spacious lounge/home theatre and landscaped private rear alfresco area.

Further additions include central heating, reverse cycle air-conditioning and double garage.

Positioned on 869sqm, it is within close proximity to cafes and restaurants, the CBD, hospitals and just minutes to the lake and schools.

Ballarat ranked as Victoria's top regional performer with 12 percent 2018 house price growth: REIV

A Lake Wendouree three bedroom townhouse was traded for $625,000 (pictured below).

The 1/4 Hotham St home features four bedrooms, open plan living/dining area, Victorian Ash kitchen, and low maintenance courtyard garden.

Other features include custom joinery throughout, ducted heating and vacuum, side access to laundry and secure side access.

It is just a couple of blocks from Lake Wendouree and hospitals in this quiet neighbourly street, stroll to cafes, restaurants and Lake amenities.

Ballarat ranked as Victoria's top regional performer with 12 percent 2018 house price growth: REIV

Another Lake Wendouree home, this time representing the median price is 18 Burnbank Street (pictured below).

Sold for $525,000 last September the house has increased in value by $120,000 since it's 2016 sale price of $405,000.

The three bedroom one bathroom home is set on 549 sqm and is located less than 400 metres from Lake Wenouree itself.

Ballarat ranked as Victoria's top regional performer with 12 percent 2018 house price growth: REIV

An example of the median sale price in Sebastopol is 4/3 Verdon Street  (pictured below).

The property, sold in early December, is currently tenanted at $235 per week.

Sold for $231,000 the two bedroom, one bathroom townhouse saw an increase in price of $36,000 from it's January 2015 sale price of $195,000.

Situated within walking distance of a supermarket, shopping & public transport, the townhouse features a one car garage.

Ballarat ranked as Victoria's top regional performer with 12 percent 2018 house price growth: REIV

An example of the median price in Mount Clear is 946 Geelong Road (pictured below).

Set on 557 sqm, the three bedroom one bathroom home sold in late July for $268,000.

Last sold in November 2011 for $197,000, the property has increased in value by $71,000 over the past 7 years.

Located in between the Ballarat CBD & Federation University, the property is close to schools, super markets & recreational facilities.

Ballarat ranked as Victoria's top regional performer with 12 percent 2018 house price growth: REIV

Tags: 
Ballarat Property Hotspot

Comments

Be the first one to comment on this article
What would you like to say about this project?