The Mildura real estate market is primed for future growth, driven by rising demand for properties and scarce supply.
The northern Victorian regional city has been identified as a ‘supercharged’ market, according to the latest Hotspotting Price Predictor Index.
Other ‘supercharged’ markets include Bright, Cowes, Highton, Morwell, Ocean Grove, Torquay and Wallan.
The Mildura market is driven by an extremely high demand for a limited supply of homes, according to Barry Plant Mildura director, Martin Scott.
“Homes are selling fast and there has been an unprecedented number of off-market sales in the past six months,” he said.
“Vacant blocks are being snapped up quickly by people wanting to build a home to live in or investors, with local builders struggling to keep up with the pace.”
The bulk of buyers are local families wanting to upgrade to newer and bigger homes, people moving into the area for employment, and city retirees wanting a lifestyle change and a warmer climate.
Compared to other regional centres, Mildura has been undervalued for many years, Mr Scott said.
“It is a vibrant, self-supported economy rich in agriculture and industry,” Mr Scott explained.
“A major transport hub on the iconic Murray River with its array of water sports, it offers great weather, good schools, lifestyle opportunities and an expanding health system.”
The Mildura South Regional Sporting Precinct, part of the Mildura Future Ready strategy, is another drawcard to the area and will be completed by the end of this year.
Intense demand by buyers for a limited supply of homes for sale has pushed up the median price in the area to $345,766, according to realestate.com.au.
About 12-18 months ago, the median house price hovered around $275,000, according to senior Barry Plant sales consultant, Matt Mason.
The latest market analysis by Propertyology revealed Mildura’s 30 per cent increase in median house price over the past five years outperformed seven out of eight capital cities, he said.
“In my opinion, the spike of that growth would have been in the last 12-18 months,” Mr Mason said.
“The reality is buyers who are sick of missing out are making stronger offers and going the extra $10,000-$30,000 because it’s not going to hurt the repayments too much.”
Mr Mason pointed to 3 Aiden Way, Mildura, which was priced at $360,000-$396,000 but which sold to a local investor after a week of the market for $416,000.
“It sold after one open that attracted 16 attendees and generated five formal offers,” Mr Mason said.
After only eight days on the market, 238 Seventh Street, Mildura, which was listed at $215,000-$235,000, was snapped up by a local family for $247,000.
The property attracted 22 people to its open-house inspection and six formal offers.
Mr Mason said the numbers at inspections had soared.
“We would have been averaging eight to 10 buyers per open house this time last year, and we now range between 15 to 40 buyers,” he said.
With the shortage of comparable properties on the market, there are multiple offers on all listings.
“In the past, we used to have only one offer for a successful sale, but now it is common to have eight to 10 genuine offers per sale,” Mr Mason said.
“We are constantly surprised at the buyer competition per property and sale prices achieved, and so are our vendors.”