The City of Great Bendigo gave approval for property developers Vital Communities to go ahead with the 147-housing development next to the Bendigo Golf Club. Council has initially approved 120 homes with the balance subject to further approval.

Aimed at the over-50s market, the extensive range of architect designed homes will be built around a resort-style health and wellbeing centre on a 7ha 'land lease' estate on the corner of Golf Course Road and Station Street in Epsom.

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It will feature a clubhouse, lawn bowls rinks, a swimming pool, putting green, gym and heritage park.

The estate - titled Vital Bendigo - will adopt a land lease model, whereby the resident buys the house but leases the land it sits on to reduce the purchase price.

Vital Communities head of acquisitions and planning Rob Evans said the price of a Vital Bendigo home would start around $340,000 - about $150,000 lower than the median house price in Bendigo.

"These savings enable residents to stay in the communities they love and, if they are eligible for the pension, they may also be able to take advantage of government rent assistance," Mr Evans said.

"There is no stamp duty payable on a land lease home, and while they don't own the land, residents still own their own home.

"Residents end up with more money in retirement and for their future lifestyle."

Mr Evans said residential land lease communities like Vital Bendigo were set to boom in regional Victoria, given their appeal among 'downsizers' and semi-retirees who value staying active and close to where they live.

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Mr Evans said research showed the number of people departing capital cities for regional areas had jumped by nearly 30 per cent this year.

"For Australians aged 65-plus, the increase over the same period was 51.2 per cent, more than double the increase for all age groups," he said.

"Population shifts into regional areas are not new thanks to the tree and sea change movements. However, this movement has been supercharged by the pandemic."

But Mr. Evans said ABS data also showed the number of people wanting to stay in regional centres had also increased.

"Bendigo's growing population of retirees, pre-retirees, and 're-locators' is adding to local housing affordability woes and increasing demand on local government funded community facilities and services," Mr Evans said.

"Vital Bendigo is ideally placed to alleviate these pressures."

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A limited number of lots will be released for sale prior to Christmas, followed by a major release in the new year.

"Vital has already received 50 registrations of interest from local people on community noticeboards," Mr Evans said.

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