The Real Estate Institute of Victoria has expressed concern about the mixed results afforded to regional Victoria following the state and federal budgets.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
REIV President Joseph Walton said it’s unsurprising that housing affordability was a key focus of both the state and federal governments in the lead up to this year’s budget announcements, particularly given the strength of the Melbourne market.
One of the most headline grabbing policies from Tuesday’s budget was the First Home Super Savers Scheme, which will allow those buying their first home the use of up to $30,000 of voluntary superannuation contributions to place a deposit on a house or apartment.
“While the REIV supports the First Home Super Savers Scheme in principle, the $30,000 cap on savings in super accounts will be of most benefit to buyers in regional Victoria where the median house price is currently $377,000,” said Mr Walton.
According to the REIV, Bendigo’s property prices are slightly higher, having increased 7.9 per cent over the year to March to a median of $395,000. House prices in Greater Bendigo have remained relatively stable with a median house price of $329,750.
REIV Bendigo division chairman Andrew Murphy noted that housing affordability in Bendigo doesn’t present the same challenges as it does for prospective buyers in metropolitan areas. “We do find people come from other regional centres, as it’s an affordable place to get into the market,” he said.
Meanwhile, the state government’s recent budget announcement of an increase in the First Home Owners Grant (FHOG) to $20,000 is also deemed to effect regional Victorians differently to their city counterparts.
“Accessibility to the housing market is important in order to create wealth,” said Mr Murphy. “The FHOG can help people, and the contributions that came out of the federal budget are a useful way to save towards a deposit.”
However Mr Walton added that the REIV thinks the new measures doesn’t go far enough to genuinely assist first home buyers to enter the market. “Extending the FHOG to include established properties would have been more beneficial for first homebuyers.”
The REIV is also disappointed that the federal government didn’t deliver the full $1.45 billion to fund regional rail. "Infrastructure, particularly reliable rail services, enhances the attractiveness of regional centres and is crucial to the future growth of these areas,” Mr Walton said. "Areas within commuting distance of Melbourne are already seeing strong price growth with greater infrastructure and amenities likely to encourage more buyers to consider relocating to regional Victoria."