Optimism in the air for Victoria’s regional property market.

A couple of weeks ago, the Real Estate Institute of Victoria (REIV) reported that regional property prices had held strong, remaining at a median price of $602,000, which was almost on level with the previous quarter of $603,000. Annually, the regional median price has grown 2.2%.

Regional units and apartments median prices also grew annually by 3.7% according to REIV, to $425,000.

These numbers come as the property markets in both metropolitan and regional areas are looking to rebound after a year of sliding, thanks to rising inflation and continued interest rate cuts by the Reserve Bank of Australia.

But with the Australian Bureau of Statistics reporting a drop in inflation from a 31-year high at the end of 2022, and with many predicting the RBA to halt rate rises and maybe even begin to cut rates again as early as 2024, it’s hard not to be buoyant about the current real estate market.

Another good indicator of a rebounding property market is CoreLogic’s national Home Value Index (HVI), which in March posted a rise of 0.6%, breaking a 10-month streak of falls. The regional index only saw a rise of 0.2%, however breaking it down into sub-regions, Victoria rose by 2.4%.

“The best performing regional markets are quite different to what we were seeing through the recent growth cycle,” said Tim Lawless, Research Director of CoreLogic.

“In today’s market it is mainly rural areas that are seeing the strongest increases, rather than the commutable coastal and lifestyle markets that were booming through the upswing. However, we are seeing some subtle growth return to regions within commuting distance of the major capitals, after many recorded a sharp drop in values.”

The Ballarat and Bendigo markets have mostly continued to defy the downturn in the market over the last 12 months. Bendigo median home prices sit at $660,000, which is up 10% from the period April 2022 to March 2023, with unit prices up 15.6% to $440,000. In Ballarat North, which is one of the best-performing areas in the Ballarat region, the median house price is up 13.9% to $645,000, while units are up 15.3% to $415,000.

“Despite all the doom and gloom in the market over the last 12 months, we have found prices continue to hold above pre-covid levels. Days on market have drawn out a little as buyers wait for the Reserve Bank to complete the rising interest rate cycle, but the sentiment appears to be shifting to a more positive outlook in and around Bendigo, Maryborough and Ballarat,” said Yvonne Jackson, Director of Barry Plant Bendigo, Maryborough and Ballarat offices. “We are very excited for what the rest of 2023 holds for us and those looking to buy and sell in these regions!’