A $174 million economic boost for Mildura, but property boom further off
Victorian Planning Minister Matthew Guy has approved the rezoning of land outside Mildura, paving the way for a $174 million biomass power plant.
However, it might not mean that property prices will skyrocket in the town, which sits a six hour drive north-west of Melbourne.
Providing a rezoning approval for the multi-million dollar project, it was noted that land at Carwarp was given approval for the 35-megawatt power station with 18-kilometre electricity transmission line and substation.
“Transforming plant waste into a new source of power has numerous benefits for the region and our environment. Residents are likely to see lower power bills, farmers will have a new income stream and the local economy will be bolstered by new industry and jobs,” Guy said.
“With an increasing focus on renewable energy, long-term planning for the region has identified this opportunity to expand on traditional regional industries to drive jobs and economic growth.
“As envisaged in the Loddon Mallee North Regional Growth Plan, the region is quickly becoming a centre for investment in sustainable energy production, such as solar and biofuels. This next stage will confirm the region’s reputation as a clean energy centre.”
The plant will create 26 new full time jobs and generate enough electricity to power 20,000 homes, according to Mildura MLA Peter Crisp.
Yet despite this, and a $3 million Regional Growth Fund government grant, it won’t necessarily see prices rise.
Hotspotting’s Terry Ryder told Property Observer that Mildura is classified as a “long shot”.
“Mildura often appears to be on the verge of a boom, but never quite gets there,” he explained.
“The Biomass proposal is just the latest in a long line of alternative energy projects proposed for the Mildura area. A number of solar power stations have been planned. But, like so many alternative power developments planned around Australia, they never seem to happen.”
He also noted that there’s more money being poured in, with a major rail upgrade, but if it goes ahead according to plan then investors shouldn’t expect to see it completed until 2018.
“Mildura has appeal because of its cheap prices and good rental yields, but the missing factor is capital growth. It needs some of these major proposals to happen to push the property market into a growth phase.”
At present, Mildura's median house price sits at $230,000, according to RP Data, offering a median weekly advertised rent of $265.
In 2012, along with Shepparton, it topped Demographia's list of Victoria's most affordable regional areas.