By Gil King, REIV
IT’S a great time for property investors to consider buying in regional Victoria.
Australian Bureau of Statistics (ABS) data shows regional Victoria’s population grew by 1.3 per cent between 2017 and 2018, with growth well above that average in municipalities like Mitchell (3.25), Surf Coast (2.88), Bass Coast (2.74), Greater Geelong and Baw Baw (2.64), Golden Plains (2.45), Moorabool (2.14), Mansfield (2.08), Macedon Ranges (2.0), Ballarat (1.81), Greater Bendigo and Murrindindi (1.71), Strathbogie (1.54) and East Gippsland and Wodonga (1.51).
Separate from their municipalities, towns including Mildura and Stawell have experienced strong population growth, the latter fuelled by gold mining.
Rental vacancy rates are trending upwards in most of regional Victoria but remain below the 3 per cent level at which the rental market is considered healthy.
In August, vacancy rates ranged from 2.1 per cent in Shepparton and the Goulburn Valley to 0.9 per cent in Mildura and the Mallee.
The Victorian Government supports decentralisation. It has moved the Transport Accident Commission to Geelong, established the Ballarat GovHub for up to 1000 public servants, and is planning rail improvements to cut commuting times to Melbourne.
This month, it announced incentives up to $50,000 to encourage teachers to move to regional Victoria. Further incentive programs may follow as the government looks to ease the pressure on Melbourne and grow regional Victoria.
All this presents great opportunities for investors. Property prices are lower outside Melbourne. Demand for regional rental property is particularly strong.
Following a correction earlier this year, the property market is recovering well across Victoria.
Regional investors should consider their options.
The REIV website is an ideal place to start your property research, with accurate and unbiased data on sales, auctions, median prices and rental yields for every location.
Our Choose a Member service helps investors connect with the right local agent based on their local experience.
For further information, go to reiv.com.au.