Positive sentiment buoys Ballarat property market: PRDnationwide

The historic Victorian regional city of Ballarat is demonstrating above average capital growth in comparison to the rest of Victoria despite slugglish transaction activity, says a new a report from PRDnationwide. 

PRDnationwide Ballarat principal Neil Jens says developer and consumer confidence is currently very strong despite the drop in sales activity, with enquiries having increased since the start of 2013.

PRDnationwide research analyst Angus McLean says research indicates that sentiment in the region remains positive. 

"With increased consumer confidence the Ballarat area is witnessing a consistency in the housing market which will see home buyers and prospective investors return, setting the scene for a positive 2013," McLean said. 

According to McLean, while residential house and unit purchasers currently remain in a state of flux, the Ballarat Area rental market has become increasingly reliable for investors since June 2012 due to the simultaneous settlement drop in the housing and unit sales numbers. 

"This is in addition to an increase in local investment in the Ballarat Area with $156 million of development expected to be completed by July 2013."

In October last year, the Ballarat West Precinct Structure Plan (PSP) was granted approval by the state government with around 1,300 hectares to be transformed into residential property to support the region's growing population.

The project will see the development of road and community infrastructure to support the 30,000 people who will call the area home once completed.

McLean says the Ballarat area has witnessed consistent capital growth in all residential markets over the past 10-year cycle, although house and unit sales numbers have dwindled 18% and 30% respectively since October 2011.

Hotspotting.com.au's Terry Ryder picks  Ballarat  and Bendigo as standout investment opportunities not only within the state of Victoria, but on a national basis.

"They rank nationally as boom towns with strong future prospects," Ryder wrote in a recent column for Property Observer.

"The B cities have a lot in common: gold rush histories, strong local economies with ample diversity, proactive councils, plenty of infrastructure development, strong business communities, prosperous tourism industries, lots of real estate investment and generous supplies of affordable dwellings.

"Both have major redevelopments of their hospitals in prospect. Both have significant education sectors, and both have manufacturing businesses that are defying the national trend of downturn in that sector. New roads are being built and airports are being upgraded. National retailers are expanding in both places. There’s even impact from the resources sector, with gold mining undergoing a revival with the benefit of modern technology.

"Both have significant numbers of residents who commute to work in Melbourne. Both will be enhanced by the $5 billion Regional Rail Link, which will shorten the gap (in travelling times) between them and the state capital," he says.

According to PRDnationwide, the Ballarat Area vacant land market has also reportedly seen encouraging interest from developers since April 2012 despite a decline in sales figures.

"With these economic growth indicators as well as increase in enquiry levels in the Ballarat Area and the announcement of the Victorian government offering an additional $16,000 in potential savings for all potential Victorian first-home buyers, including existing homes, the increased likelihood of the Ballarat Area property market stabilizing with expected total sales and median price growth is predicted toward the end of 2013," McLean said.

Photographs of Ballarat courtesy of Tourism Victoria and Flickr.