Rising Melbourne house prices are prompting many first-home buyers and families on a budget to consider the advantages of regional Victoria, according to the REIV.
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The latest REIV median house price data for the September quarter brought good news for buyers looking outside of Melbourne. The regional median house price now stands at $324,000 – about 50 per cent lower than the current Melbourne house price median.
“This makes purchasing a property well within the reach of buyers on a tighter budget,” CEO Enzo Raimondo said. “While prices have increased in some regional areas, particularly the major centres and towns within close commuting distance of Melbourne, a number of affordable properties can be found in regions that offer quality services and lifestyle attractions.”
Capital growth figures for the 12 months to September 30 showed that despite some fluctuations in the market, property can deliver a solid long-term investment, Mr Raimondo said.
Homes in regional Victoria showed an overall 4.5 per cent increase in value over the year, with growth at more than 25 per cent in some parts of the state. Areas in particular that experienced exceptional growth included the Colac-Otway region (with 9.4 per cent growth in the September quarter) and Wangaratta (with a rise of 11.5 per cent in the past three months).
“Seasonality also plays a strong factor in regional sales, with the median house price in the Alpine region up 10.2 per cent in the September quarter – coinciding with the peak ski season, which also represents the best time of year for sellers,” he said.
“Areas with good local infrastructure continue to attract regional buyers who seek lifestyle opportunities in well-serviced locations,” Mr Raimondo said.
“Both Benalla and the Indigo region experienced smaller growth of around three per cent in the last quarter, but grew by double digits in the past 12 months – indicating that Victoria’s regional property market still offers an affordable entry point while delivering considerable returns over a sustained period.”