The 29 two bedroom townhouses are being constructed on Thunder Street in a project dubbed “Central Bendigo”.

PRD Nationwide Bendigo managing director Tom Isaacs said most of stage one had sold out with construction set to begin soon and stage two going to market within the next 30 days.

He said the location, near to the new hospital and only about a kilometre from the centre of town attracted buyers keen on inner city living.

“We’ve had a lot of interest from both investors and owner-occupiers due to the proximity to town and we’re seeing more and more people wanting to be close to town and looking for low maintenance living,” he said.

Mr Isaacs said the development was part of a trend of increased demand for high-density living options that were also close to amenities.

“With the hospital and the art gallery and the improvements that we’re seeing throughout Bendigo, it’s certainly dragging more people from as far up north as Swan Hill, Mildura and these places, and certainly we’re getting people now coming from Melbourne looking for affordable living and even into retirement,” he said.

One of the directors of the company behind the development, Adrian Sisk, said the business would be utilising local civil contractors and surveyors on the build to return as much investment to the local community as possible.

“We did the 14 [townhouses] next door so that just shows our commitment to Bendigo and that we’re using as much local as we possible can,” he said.

Mr Isaacs predicted further similar developments would follow, based on high demand for rental properties in the city.

“We’re getting five to 10 people through every inspection with multiple applications so the need for more housing in the city is becoming stronger and stronger,” he said.

The townhouses are located within a kilometre of the Bendigo hospital and Lake Weeroona.