The state’s regional property market continues to experience solid capital growth, not up with metro Melbourne but still with house prices increasing 6.4 per cent the year to a record high median price of $385,000.
That’s according to a report from the Real Estate Institute of Victoria this week.
In the year to June 30, 2017 towns within commuting distance of the city were the main drivers of this growth with almost half of the top performing towns located within Greater Geelong.
But Bass Coast too has seen very pleasing increases in value and demand out-stripping supply by a considerable degree.
The latest REIV data shows the Geelong suburb of Hamlyn Heights recorded regional Victoria’s strongest median house price growth over the year, increasing 24.2 per cent in the year to $485,000. This was up from $390,500 in June last year.
Similar price growth was also experienced in East Geelong with the median house price topping $576,000 in June – an annual increase of $106,000.
Geelong West was another top performer with house prices in the suburb rising 21.5 per cent over the year to a median of $617,000. This was up from $508,000 in June 2016.
Meanwhile, Heathcote on the outskirts of Bendigo recorded the state’s largest growth outside of Geelong with house prices in the town increasing $50,000 over the year to a median of $300,000.
Significant price growth was also experienced in the Ballarat suburb of Soldiers Hill, up 18 per cent over the year to a median of $407,000- an annual increase of $62,000.
Kilmore, north of Melbourne, also benefitted from its proximity to the city with house prices in the town up 15.4 per cent over the year to a median of $385,000.
Other towns recording double-digit price growth include Maldon, up 11.2 per cent to $435,000; Ballarat Central, up 10.8 per cent to $385,000; Gisborne, up 10.4 per cent to $670,000; and Trafalgar, up 10.2 per cent to $343,250.
The story rings true for Wonthaggi and district as well, according to Michael Chambers of PBE Real Estate, where 10 per cent, 15 per cent and even stronger rises in value for the year are par for the course.
“Yes, definitely 10 per cent to 15 per cent, maybe more depending on location and whether it’s in the desirable home range,” Mr Chambers said.
“Stocks are low and demand is high. It’s supply and demand and properties are selling fast. Most aren’t on our books for more than two to three weeks.
“Some, in that desirable home category, will sell in days in fact I’d say 30 per cent of the homes that come in are selling within the week for the asking price.
“The best advice is to come in and register your interest. We’ll record your preferences and when a property comes in that fits the bill we’ll call you. We’re getting properties at the moment, making the calls to those who’ve expressed an interest and they’re being sold that way.
“You’ve also got the situation where there’s only a few blocks of land left in the town; there’s half a dozen in the Vicars Estate, similar in the College Estate and at least 12 months away from titles being available in any of the new estates.”
So it’s no wonder that prices in regional areas such as Wonthaggi are on the increase, not only able to benefit from proximity to Melbourne’s expanding eastern suburbs but also boasting the lifestyle component, close to the coast. What’s not to like?