NEW housing estates in the region are filling up with an increasing number of owner-occupiers – but significant investment from elsewhere in Australia is still keeping rental prices affordable, some in the industry say.
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Damien Tangey, managing director of Birchgrove Property, said the majority of blocks in his estates were being sold to owner-occupiers.
Most buyers, he said, came from the region or were relocating from places like Swan Hill, Kerang or, in some cases, Melbourne.
“As a land supplier, we don’t have significant interest (from outside investors),” he said.
“We’re seeing a staple market of owner-occupiers in a pretty reasonable economic climate.”
Residential blocks, Mr Tangey said, were being sold at about the same rate the developer could make them available.
But several years ago, he added, investment from buyers in Queensland and New South Wales in particular had turned an under-supply of rentals into an over-supply.
Brokers had spruiked Bendigo as a prime residential “hot spot”, causing a rush of sales. The rental market had since evened out, he said.
Tom Isaacs, director of PRD Nationwide, sees the property market in Bendigo as still having a healthy component of outside investment that is helping to keep rental properties affordable.
“It’s proved to be very positive for the local economy,” he said.
Financial planning and accounting networks had pushed Bendigo as a good place to invest, especially since larger housing estates had become the norm.
Investors “from anywhere in Australia – the capital cities mainly” – had taken advantage of tax incentives. However, activity had tapered somewhat with banks tightening up conditions around investment property mortagages, Mr Isaacs said.
Even so, demand remained.
“We get a lot of investor inquiries about established and new homes,” Mr Isaac said.
“They will look at a broad part of the market.
“If they are buying through investment groups, they will look at larger estates.”
Both Mr Tangey and Mr Isaacs said interest from abroad was largely confined to metropolitan centres where apartment developments were popular.
Foreign investors are not allowed to buy established residential property.