House prices keep rising in regional Victoria

Generic image. Picture: THINKSTOCK

Generic image. Picture: THINKSTOCK

BENDIGO’s median house price of $335,000 is exceeding that of regional Victoria.

According to Real Estate Institute of Victoria's quarterly June data report, the median house price across regional Victoria was $327,000.

REIV’s CEO Enzo Raimondo said Bendigo’s $335,000 median price was an increase of 1.5 per cent for the quarter and an annual change of 7.9 per cent. He said the increase could be reflected in demand for homes driven by the New Bendigo Hospital project and other big business established in the city.

"In key regional centres there were price increases in the June quarter, to cap off a solid year for our major regional cities," Mr Raimondo said.

He said the regional Victoria's overall growth represented an increase of 0.8 per cent on the last quarter but was lower than the recorded 1.3 per cent before that. The increase took the state's year-on-year house price increase to 4.1 per cent for regional Victoria.

Greater Geelong increased by 0.2 per cent, but had its annual change was a healthy 6.7 per cent, Mr Raimondo said. Ballarat returned a 0.3 per cent increase with an annual change of 3.9 per cent. Shepparton increased 3.1 per cent in the quarter and in Benalla, the median was up by 5.3 per cent.

Mr Raimondo said areas sought after by people looking for a tree-change lifestyle within commuting distance of Melbourne fared well in the June quarter.

"For example, the Colac-Otway region showed June-quarter growth of 8.3 per cent and 17.2 per cent annual change, although there were fewer than 30 sales recorded during that 12 months And the median price in the Macedon Ranges grew 4 per cent for the June quarter and 11.6 per cent over the 12 months," he said.

Mr Raimondo said median prices often showed considerable variation across the state because varying factors drove growth in the different markets. These included transport links, employment opportunities, proximity to Melbourne or to amenities such as the coast or snow.

"Although the median price fell in some centres in the June quarter, in some of these this followed substantial growth, so the 12 monthly figure still showed healthy growth,” he said. “For example, in Ararat the median fell 1.8 per cent, but the annual change was an increase of more than 20 per cent."

In other areas where the data showed a price decrease there were fewer than 50 sales recorded for the past 12 months, so there were insufficient sales to consider this definitive, he said.

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