Regional Victorian property prices going nowhere

Regional Victorian property prices going nowhere
Enzo RaimondoDecember 8, 2020

The REIV 2012 March quarter median prices show that regional Victoria property prices have remained flat over the quarter and year.

The median house price in regional Victoria was $314,000, representing a minor increase of 1.3% from a revised December quarter median of $310,000. This is similar to the increase of 0.9% recorded in metropolitan Melbourne.

Demand for residential property over the past year reflected the broader state of the economy and that buyers would continue to find that prices will maintain their current levels in the short term.

The property market moves in cycles, and now we are in one of stability, with overall median house prices showing no real growth.

The last 12 months also reflect both an easing in population growth and improvement in the supply of new homes.

Of the three main regional cities, demand was strongest in Bendigo, where a 5.2% improvement has caused the median house price to increase to $305,000. This is a new high for Bendigo.

In Geelong demand is also stable, with a 2.1% increase to $385,000, and in Ballarat there was a minor reduction of 0.3% to $288,000.

In Mildura there was a 5.6% increase over the quarter from $215,000 to $228,000.

A reduction in the median was recorded in Wodonga, where the price dropped from $298,000 to $255,000 over the quarter; however,  there does appear to have been a spike in prices in December, as the annual reduction was a more moderate -4.1%.

Until the economy and confidence improve, the market is likely to remain as it is now. Buyers and sellers over the next quarter in particular will be watching interest rates over the three months.

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.

 

Enzo Raimondo

Enzo Raimondo is CEO of the Real Estate Institute of Victoria.

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