Victorian Towns See Double-Digit House Price Surge in One Year
In recent reports, Victorian towns have experienced a notable surge in house prices, reflecting a robust demand in affordable housing markets. This trend has been largely driven by a combination of strong local economies and employment opportunities in various sectors, particularly agriculture and healthcare.
Area-Specific Price Trends
Among the regions showing significant price growth, some affordable locations have outperformed traditional lifestyle towns. For instance, the Surf Coast remains the most expensive area in regional Victoria, with a median house price of $1,245,000. However, many other towns in Victoria are showing double-digit increases, appealing to homebuyers seeking more value for their money.
Government Support and Economic Confidence
The Australian Government’s expansion of the 5% Deposit Scheme in October aims to bolster first-time homebuyer participation. Analysts predict that this policy will contribute to increased price growth, particularly in regional areas of Victoria. KPMG urban economist Terry Rawnsley emphasizes the confidence in local job markets, which have maintained low unemployment rates. He notes that residents are optimistic about job security and potential pay increases.
Job Market Impact on Housing Choices
- Key employment sectors: healthcare, aged care, agriculture, retail, and hospitality.
- Strong job availability encourages relocation away from major cities like Melbourne.
- More affordable housing options, with prices often around $500,000, attract buyers.
Many buyers are reconsidering urban living as they discover the opportunity to purchase quality homes in regional markets. This shift is evident in towns such as Horsham, where the local property market has remained robust, largely due to its agricultural and industrial base.
Local Market Dynamics
According to Lionel Godwin of AL Property agents in Horsham, the area has seen significant price growth and heightened investor interest. The influx of workers attracted by renewable energy, manufacturing, and mining operations has positively impacted the housing market.
Community and Infrastructure Appeal
- High liveability scores due to good infrastructure and community services.
- Active buyers’ agents searching for homes priced under $600,000.
- Projected rental returns are encouraging investments within the region.
In contrast, Nick McIntyre, a real estate manager in Warracknabeal, observes that the housing supply is not keeping pace with demand. Many homeowners are reluctant to list their properties, coupled with stabilizing interest rates that entice buyers and investors alike.
Conclusion
This ongoing shift in Victorian housing dynamics indicates that residents are considering regional options more seriously. As demand continues to rise, it reflects a broader trend of people seeking affordable housing in areas with strong economies and vibrant communities. The hope is that these changes will benefit both current residents and newcomers looking to establish roots in regional Victoria.
