Regional Victoria sees exceptional property price growth from Exodus to Affordable Lifestyle: Hotspotting's Terry Ryder
OPINION
The dominant trend in Australian real estate, the one I call the Exodus to Affordable Lifestyle, first became highly visible 3-4 years ago in Victoria.
Melbourne residents started buying in regional cities and towns, firstly in places close to the state capital like Geelong and Ballarat. And, then, as the trend gathered pace, they added Bendigo to the shopping list, as well as the hill change areas north of Melbourne and the growth areas south-east of the city.
The year of the pandemic, with Melbourne suffering major lockdown periods, gave further impetus to the idea of leaving the big city and securing a different kind of lifestyle elsewhere in the state, while working remotely. Now buyers are targeting more distant centres like Warrnambool, Mildura, Echuca and the towns of East Gippsland.
This has resulted in spectacular growth in property prices in locations large and small across Victoria is the past year.
When I conducted a price analysis of Regional Victoria three months ago, I reported: “Regional Victoria continues to excel on price performance, with 94% of locations across the state recording price growth in the past 12 months – and with 40 towns or suburbs achieving double-digit increases in their median house prices.”
I’ve just completed a new analysis, which records an even more spectacular price performance: 96% of locations in Regional Victoria have had growth in their median house prices in the past 12 months – with 87 towns or suburbs achieving double-digit increases, including 20 locations which have lifted more than 20% in the past year.
Out of 139 suburbs and towns analysed, 133 have had annual growth - with 121 above 5%, 87 above 10% and 20 above 20%. These are nation-leading results on price growth.
Ballarat, Bendigo and Geelong are all standout performers with multiple suburbs with double-digit growth in their median house prices, but there are strong rising markets right
across the regional areas of the state.
Some of the lesser-known towns of Victoria have had extraordinary increases in their median house prices in the past. Yarrawonga has risen 28% to $480,000, Myrtleford is up 29% to $380,000, Korumburra has risen 28% to $400,000, Maffra is up 24% to $315,000, Lakes Entrance has increased 26% to $385,000, Stawell has risen 22% to $230,000, Hamilton has increased 25% to $265,000 and Bright has lifted 23% to $715,000.
Towns which have increased by 16-18% include Venus Bay ($390,000), Mansfield ($530,000), Apollo Bay ($700,000), Beechworth ($540,000), Daylesford ($705,000), Loch Sport ($270,000) and Leongatha ($425,000).
There are numerous other towns where the annual growth has been between 10% and 15%, including Ararat ($245,000), Bannockburn ($525,000), Benalla ($325,000), Cobram ($300,000), Colac ($355,000), Drouin ($490,000), Echuca ($415,000), Euroa ($360,000), Inverloch ($670,000), Maddingley ($530,000), Metung ($450,000), Mildura ($335,000), Nagambie ($470,000), North Wonthaggi ($435,000), Paynesville ($385,000), Swan Hill ($320,000), Wangaratta ($360,000) and Warrnambool ($415,000).
Among the Hill Change areas a little north of Melbourne, Wallan, Kilmore, Seymour, Woodend, Gisborne, Romsey, Maldon and Maryborough have all increased 10% to 15% in the past 12 months. Median prices range from $270,000 at Maryborough to $855,000 at Woodend.
East of Melbourne, the towns of the Latrobe Valley have been particularly prolific, with Moe up 24% to $260,000, Churchill rising 22% to $235,000 and Newborough increasing 20% to $305,000. In Cardinia Shire on the south-eastern fringe of Melbourne, Emerald has lifted 13% to $750,000 and Beaconsfield has jumped 15% to $790,000.
The larger centres which have led the renaissance in Regional Victoria values – Ballarat, Bendigo and Geelong – are still producing major growth in median house prices, suburb by suburb. Most suburbs in Bendigo have had double-digit annual increases, headed by four locations which have increased 20-21% - White Hills ($380,000), Heathcote ($410,000), Maiden Gully ($620,000) and Strathfieldsaye ($555,000).
It’s a similar scenario in Ballarat, where a dozen suburbs have grown by 11% or more, headed by Buninyong (up 26% to $615,000) and Lake Wendouree (up 26% to $1,070,000). Geelong also has a dozen suburbs with double-digit annual growth, led by East Geelong (up 25% to $795,000) and Geelong (up 23% to $885,000). Barwon Heads ($1,215,000), Herne Hill ($615,000), Ocean Grove ($800,000) and Portarlington ($710,000) have all had annual increases in the 15-17% range.