14 March, 2022 / Category: Blog
Regional Victorian house prices grew at the fastest rate in 20 years through 2021, with the median house price increasing 27 per cent to reach $565,000 (according to REIV). It was driven by a combination of factors, including housing affordability, the ability to work remotely, and a desire for more space.
In the last quarter of 2021, we saw a frenzy of activity in regional Victoria following the most recent Melbourne lockdown, with properties selling within days of hitting the market. In the first two months of 2022, the heat has come out of the market, and buyers can now spend more time doing proper due diligence before buying.
We expect 2022 will bring moderate growth and a stable market for the regions, particularly those within a few hours of Melbourne. It is now more important than ever to make an informed purchase decision in regional Victoria. This article will give you an overview of the key markets we have expert local knowledge in, including our opinion on the areas we think have strong potential for growth in 2022.
Did you know that we are the only buyer’s advocacy business with an experienced buyer’s advocate based in Central Victoria? We know the whole region intimately, from the best streets and suburbs to the ones to avoid.
Kathy will likely be familiar with areas you have never even heard of if you’re from Melbourne. Plus, she is in close contact with all the local real estate agents in the region, meaning she has an in-depth understanding of what property is coming up and when and how to negotiate the best deal for you.
Contact Kathy today to discuss the market and properties that might suit you.
Like the rest of regional Victoria, Central Victoria has experienced phenomenal growth over the last two years. While we anticipate that the capital growth rate in the area will stabilise this year, there is still a booming rental market providing the foundations for excellent property investing.
Properties range in price from $300,000 to up to $5,000,000, so there are opportunities for both owner-occupiers, holiday homes and investment properties.
Bendigo has benefitted from significant price growth in 2021, with values up to 30% in some areas. Bendigo has now become one of Victoria’s leading cities and provides various employment opportunities.
Bendigo is popular for owner-occupiers, renters and investors because of its vast employment opportunities and distance to Melbourne (under two hours to Melbourne via car or train). The vacancy rate in Bendigo is currently only 1%, providing the ideal foundations for a positive investment return.
In addition to the existing universities, hospitals, courts, businesses, and retailers, Bendigo also has significant government-funded projects in the pipeline. We expect Bendigo to continue providing good investment foundations across yield and capital growth.
There are opportunities in Bendigo for entry-level investments, starting from less than $300,000. You can buy a villa unit and achieve a good yield of about 4.6%. A property fitting this profile is currently on the market in Quarry Hill, you can view it here.
Bendigo also has excellent opportunities for families looking to owner-occupy with three to four-bedroom homes in nice areas available from approximately $600,000. These are also popular in the rental market if you want to invest. Infolio bought a property fitting this profile late last year, which was rented on the first open for inspection.
Daylesford is an idyllic destination marked by rolling hills, misty hot springs, lush vineyards and sprawling lavender fields. At only an hour’s drive from Melbourne, about 90% of buyers in this area are from Melbourne, drawn in by the historical town’s beauty and thriving retail, restaurant and service offerings.
Properties under approximately $1,500,000 in Dalesford are hotly contested. If the property is well presented, you can expect that there will be offers after the first open for inspection as most buyers are purchasing a second home (for a holiday home or investment property) and don’t want to renovate.
Given the service-based offering of a Dalesford, there is consistently high demand for rental properties from the staff working in the area (i.e. hospitality, service and retail).
If you can afford to buy in Daylesford, we expect yields to remain strong this year, around 3-4%; while capital growth will stabilise, good properties will continue to be heavily contested.
Unlike Daylesford, Castlemaine is traditionally a working town and is not reliant on tourism; however, its tourist base is growing steadily. Similarly to the rest of regional Victoria, Castlemain saw 16% growth in 2021.
2022 has opened with less frenzy in the market; however, this is typical for this time of year which is traditionally dry and hot in Castlemaine. The rental market is slower than expected, with eight properties currently on the market. Over 21% of the town’s residents rent, so it is unusual to see this many properties listed, and we don’t expect it to last.
There is currently a good range of properties on the market for sale ranging from $500,000 to $1,000,000. If buying for investment purposes, you can expect a yield of between 3% and 4%.
Nestled between Melbourne and Bendigo, at the foot of the Macedon Ranges, Macedon has long been seen as the ‘Portsea of Central Victoria’. Prominent lifestyle properties are still selling very quickly to Melbourne and Sydney buyers for significant prices.
Some properties might linger on the market for longer; however, this tends to be because they are overpriced. Given Macedon’s proximity to Melbourne (45 minutes to the CBD), we expect values and competition for property to remain high in 2022.
Central Victoria and most of regional Victoria have seen such phenomenal growth over the last two years that it’s hard to know where to look for future potential capital growth.
One of our favourite areas is Guildford, its about 10 minutes from Daylesford and has mostly farming and lifestyle properties. New owners have taken over the local pub and have reinvented the popular country haunt. Prices in Guildford are still below Daylesford, but we expect them to grow over the coming years.
Kyneton in the Macedon Ranges is another of our spots to watch, a gold rush village that offers the best of country living with the sophistication of the big city. With a median house price of $695,000 and on the rail line between Bendigo and Melbourne, Kyneton ticks all the boxes for a ‘tree-change’ without the price tag of neighbouring areas.
Other areas we think are worth looking at include: Hepburn, Taradale and Malmsbury. These locations feature stunning natural landscapes, great communities and reasonable access to Melbourne.
Our approach to finding the ideal spot in Central Victoria is to ensure you have easy access to Melbourne, either via the train or the Calder freeway (our rule of thumb is no more than 20 minutes from the Calder Freeway).
To find out more about Central Victoria and how we can help you get into the market here, get in touch with Kathy, our local, Central Victorian expert.