Rising property prices in Melbourne are pushing house hunters out of the capital and turning them towards central Victoria, with Castlemaine proving particularly popular destination for those seeking an affordable home.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
A Real Estate Institute of Victoria report released yesterday found the town was last year home to the highest median house price rise outside Geelong, another regional centre experiencing a real estate boom.
House prices in Castlemaine increased 19.1 per cent in the 12 months before March, hitting $452,500. That price was just $380,000 for the same period in 2015-16.
Price rises in some Geelong suburbs over the same period were just shy of 30 per cent.
Another central Victorian suburb that saw significant rises in the past year was Gisborne; median prices there jumped more than 17 per cent, meaning the average vendor reaped $691,000 from a sale.
Heathcote also experienced similar growth, with median sale figures hitting $292,500, an increase of 10 per cent over 12 months.
A RIEV spokesperson said it was typically professionals who made the move beyond Melbourne’s borders, a decision made possible because of public transport links with the city and commitments from government to improve regional infrastructure.
These services meant the median property price in some regional areas was higher than in suburbs on the outskirts of Melbourne, places from which commuting to and from the city could be difficult.
Buyers were also escaping a record median house price in Melbourne: $826,000 as of March, a figure buoyed by high buyer demand but little house availability.
Asked whether the price rises could make home ownership more difficult for locals, the RIEV spokesperson said many regional people new to the market would still be able to afford homes thanks to housing affordability initiatives from state and federal governments.
They include banishing stamp duty for first home owners who buy properties worth less than $600,000, and the doubling of the first home owners grant for those in regional areas.
Against the trend, the median price of homes inside the City of Greater Bendigo. That comes despite agents telling the Bendigo Advertiser seven-figure home sales are becoming more common in Bendigo, including homes worth more than $2 million.
Mark Kearney
Journalist. Traveller. Pop culture connoisseur. Mark is passionate about education, the arts and social justice, especially stories affecting the LGBTI community.
Journalist. Traveller. Pop culture connoisseur. Mark is passionate about education, the arts and social justice, especially stories affecting the LGBTI community.
