Ballarat townhouse market strong: Herron Todd White

Ballarat townhouse market strong: Herron Todd White
Ballarat townhouse market strong: Herron Todd White

The townhouse market in Ballarat has seen significant upswing in supply over the past five years, according to Herron Todd White.

Herron Todd White's September Month in Review noted several developers have built multiple three bedroom townhouses with the demand met by investors - holding capital values steady.

The report said developers and agents are now reporting this demand is showing some signs of slowing and As such, the next 12 months will reveal if an over supply issue is a possibility.

"off the plan purchases for villas and units have been steady in recent months with three developments of ten to 20 townhouses each in progress within Brown Hill, Ballarat East and Sebastopol," it said.

"The villa market has shown approximately a 5% to 10% increase in value over the past five years in the sub prime locations.This increase has largely been driven by investors looking for positively geared properties with tax depreciation benefits. Given the increase in supply prices should begin to stabilise. 

"An opportunity would be to purchase an older, original 1- or 2-bedroom unit in the Wendouree area, undertake a simple renovation or update of the property and then lease it. This would result in a return to the investor of around 7%."

Michael Crawford

Michael Crawford

Michael is the real estate reporter for western Sydney and loves writing about homes and the people who live in them. A former production editor and news journalist, he enjoys writing about real-world property purchases as well as aspirational buys and builds. Following a recent move from Sydney’s northern beaches, Michael now actually enjoys commuting.

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Development Townhouse Market

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