Homes in major regional towns in Victoria are proving attractive and affordable as metropolitan property markets experience a decline.
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Real Estate Institute of Victoria data reveals that Melbourne’s median house price is sitting at $834,000 compared to $350,000 across all of Bendigo.
In the 12 months from September, 2017, median property prices have increased by 4.6 per cent in Bendigo with Bendigo East (17 per cent), Strathdale (18.7 per cent) and Golden Square (18.9 per cent) standing out.
REIV chief executive Gil King said a median house price of $834,000 was out of reach for many people, particularly first home buyers and investors.
“Major regional towns are attractive for investors and owner/occupiers due to the affordable options they present compared with the city market,” he said.
“Rapid population growth, expansion of government services in the region, attraction of new businesses, vibrant cultural, arts and events scene have combined to put Bendigo very much back at the centre of Victoria.”
From 2017 to 2018, data from Pricefinder said three suburbs saw a decrease in median house prices.
Bendigo dropped 1.8 per cent to $393,000, Strathfieldsaye went down 0.7 per cent to $463,000 and Epsom fell 1.8 per cent to $348,000.
Compared to the median house price of $350,00 for the Bendigo region, the price drops reflect the rest of the market and the perceived affordability of homes in the area.
PRDnationwide Bendigo director Tom Isaacs said the region’s property market has been buoyant for a number of years.
“Every time Melbourne’s (property market) stabilises or declines, Bendigo seems to grow,” he said.
“We have heard a lot of good stories being told for investors and people relocating. Ballarat has also seen tremendous growth.”
Mr Isaacs said there was a lot of confidence for sellers in the Bendigo market.
“The market and is strong but confidence (in the market) is also really strong,” he said.
“We are hearing about buyers missing out on properties that are selling quickly.”
High demand for rental properties in the region
RENTAL vacancy rates are less than one per cent in Bendigo, suggesting a shortage of houses available and a high demand for the properties are on the market.
While home buyers are enjoying the affordability of regional areas like Bendigo, the rental market provides more a battle for people hoping to secure a home with vacancy rates sitting under one per cent.
In regional Victoria rental vacancy rates have dropped from 1.4 to 1.3 in the last month.
According to the Real Estate Institute of Victoria, Bendigo’s rental vacancy rate is 0.7 per cent.
The number of vacant rental properties in Melbourne is at two per cent for October this year.
Bendigo’s median weekly rent is $310 for a three-bedroom house and $130 for a one-bedroom unit.
This is just under the regional Victorian median rent of $330 and well under the metropolitan average rent price of $460.
But while the prices are under the state average, RIEV chief executive Gil King said it is a different story when it comes to availability.
“Rental vacancy rates in Bendigo are sitting at a low 0.7 per cent as at November 30 compared with the regional Victoria rate of 1.3 per cent,” Mr King said.
“It means demand for rental properties in the area is high.”
Between October, 2017, and September, 2018, 1581 homes were rented in Bendigo according to data website Pricefinder.
The most affordable suburbs were Flora Hill and White Hills were the average rental price was $280. Quarry Hill had an average rental price of $285.
Strahfieldsaye and Maiden Gully recorded the most expensive median prices with $360 for Strathfieldsaye and $350 for Maiden Gully.
Maiden Gully also had the least number of homes rented in the past 12 months with just 21 homes rented.
Strathfieldsaye and White Hills had the next lowest number of rentals with 81 each.
Golden Square and Bendigo had the highest number of properties rented with 269 (Golden Square) and 250 (Bendigo).
Both suburbs also had median rental prices under $300 with $290 for Golden Square and $283 for Bendigo.
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