In figures recently released by Real Estate Institute of Victoria (REIV), the median price of a house in regional Victoria climbed to an all-time high of $636,500.
So what do you get for $636,500 in regional Victoria?
REIV regional director Damian Portaro said that depended on where you were looking to buy.
Damian Portaro says investors are looking to regional Victoria to buy rental properties. (Supplied: Ray White Real Estate)
But regardless of location, Mr Portaro said the rising average house price in regional centres was being driven by investors looking to buy a rental property, not people looking to purchase somewhere to live.
“It’s buyers’ advocates and investors that have come back into Victoria that have led [to] growing prices,” he said.
“Investors left the market during COVID … and they’ve come back in and have focused on regional Victoria [because] it’s far more affordable than Melbourne — you get more bang for your buck, and you get a far better return [on a rental property].”
But regardless of market forces, what you get for your $636,500 can look very different from place to place.
Mildura
The average house price in Mildura is $515,000, so the regional Victorian median of $636,500 could get you a brand spanking new four-bedroom/two-bathroom home in new estates on the city’s fringes, such as Bluebell Court and Regunyah Way.
“$600,000 is buying you a four-bedroom home, ensuite, brick veneer [in a] newer area, fairly modern,” Mr Portaro said.
A new home in a new area of Mildura is within reach of the regional Victorian median house price. (Supplied: One Agency)
But that gap between Mildura’s average and the regional Victoria average is smaller than it has ever been, with prices steadily rising in the north-western city over the past five years.
“Houses that I was selling [in Mildura five years ago] for $350,000, I’m now selling for over $500,000,” said Mr Portaro, who is based in Mildura.
But one factor keeping prices down was a glut of land, he said.
“You’ll probably see 300+ blocks of land, and that’s just advertised land — there are 800-1,000 blocks of land on the market or that are coming.”
Meanwhile, just up the road from Mildura at Red Cliffs the average house price is $450,000.
That means the figure of $636,500 could again get you a brand new three-or-four-bedroom/two-bathroom home in a new estate, or a similar-sized house a couple of minutes out of town on a 6-hectare block.
Ballarat
While there are a number of factors affecting the regional Victorian median house price, the bigger markets of Ballarat, Bendigo and Geelong are key — more houses mean more sales affecting the average.
So unsurprisingly, in the heart of Ballarat, the average house price is almost identical to the regional Victorian median.
And that figure will predominantly get you two bedrooms, with the bulk of properties under that $636,500 figure at the time of writing being small homes, units and townhouses.
However, there are a handful of quaint “period” and “heritage” homes with three bedrooms under that regional Victorian median.
A classic period-style home, typical of Ballarat Central. (Supplied: Buxton Real Estate Group)
Helping drive the Ballarat average is its proximity to Melbourne, and the opportunities it presents for employment and lifestyle as a major centre.
“When we had the COVID move and people were heading to regional centres and leaving the city, places like Ballarat, Bendigo and Geelong were viable options [to commute] — they still have the benefit of that now,” Mr Portaro said.
Move further out into suburbs such as Canadian and Soldiers Hill and the average house price drops closer to $400,000.
In those areas, $636,500 might get you a house-and-land package for a four-bedroom/two-bathroom in the new Spencer Ridge estate, or a wide range of existing homes.
Head 40 minutes up the road to Daylesford, where the average house price is $860,000, and it is a very different matter.
The regional Victorian median will get you a block of land, a one-bedroom unit, or a very select range of houses in varying states of “renovator’s dream”.
A one-bedroom unit in Daylesford, selling for approximately $650,000. (Supplied: McQueen Real Estate)
Mr Portaro said that places like Daylesford were driven by investors looking to buy properties for short-term rentals that attracted seasonal visitors.
Coupled with the small number of sales, it made for a fluctuating and volatile average price, he said.
Warrnambool
Despite its location on the coast in south-west Victoria, three hours from Melbourne, Warrnambool’s average house price sits around $600,000 — just below the regional average.
It means $636,500 will put you in the running for a wide range of houses, from recently renovated five-bedroom homes in the “burbs” to brand new three-bedroom properties in one of the many new estates exploding on the city’s fringe.
And while other regional city averages dip and dive, Warrnambool’s has remained consistently close to the $600,000 mark for more than three years.
The Warrnambool area has had a steady flow of new housing estates spring up in recent years. (Supplied: Ludeman Real Estate)
Mr Portaro said a steady drip feed of available land could be helping to keep land values constant and higher when compared to places like Mildura where land was plentiful.
About 15 minutes along the coast in Port Fairy, the average house price jumps to $950,000.
Bendigo
After peaking at close to $700,000 two and a half years ago, the average house price in this central Victorian city has dropped to just under $600,000.
That means the regional median price will get you everything from a three-bedroom fixer-upper with money left for the fixer-upping, 50 hectares of mixed farming land, or a quaint “beautifully restored” two-bedroom house in the suburb of Quarry Hill.
A Bendigo property listed on the market for less than $600,000. (Supplied: McKean McGregor Real Estate)
Head 40 minutes closer to Melbourne, and you will find Castlemaine, where the average house price is $740,000.
Wodonga
REIV data shows the cost of Murray River living is on the rise, with the average house price in Wodonga edging past $600,000 for the first time earlier this year.
“Albury-Wodonga buyers are coming from both Melbourne and Sydney,” Mr Portaro said.
“Also the Albury side doesn’t have much development land so that keeps land prices high.”
But a budget of $600,000 will still provide plenty of options in Albury’s southern sibling.
Wodonga’s property market has plenty of options for below the regional Victorian median price. (Supplied: Project Delivery Co.)
More so than many other regional centres, the regional Vic median will get you a wide range of properties — from two-bedroom townhouses to well-located three-bedroom properties in quiet courts, from spacious houses with a pool out the back to a brand new house-and-land package of your choice.
Drive for an hour or so south through the valleys of the Mount Buffalo and Alpine national parks and you will hit Bright, where the average house price is $1.1 million — another aberration of regional housing averages.
Traralgon
Gippsland is a mixed bag for average house prices.
About 100 kilometres east of the city (or 2 hours’ drive at peak hour) you will find the bustling and fast-growing towns of Drouin and Warragul, where the average house price sits just above and just below the median regional Vic figure of $636,500 respectively.
Keep following the Princes Highway east and you’ll hit Morwell (average house price $350,000), Traralgon ($535,000) and Sale ($491,000).
This two-storey home is an example of the range of properties in Gippsland priced at less than $636,500. (Supplied: First National Real Estate)
Mr Portaro said “position and population” were two of the key factors in Gippsland, with buyers somewhat spoilt for choice.
“Mildura is interesting because it’s so isolated, whereas there are options [in Gippsland] — travel 40 minutes and you’re in a bigger centre,” he said.
Shepparton
Although house prices are steadily rising in this north-central city, Shepparton’s average house price of $482,250 is still well below the median for regional Victoria.
That average price is a bit of an illusion though, because Shepparton’s prices are often indicative of the wider area, including places like Mooroopna, Tatura and Katandra.
Mr Portaro said Shepparton was “a little under-valued” as a result.
This means the median of $636,500 will still get you a lovely four-bedroom home in Shepparton, but it is not quite the bargain regional centre you might expect.
Damian Portaro says Shepparton’s property market is “undervalued”. (Supplied: Shepparton Real Estate)
Statewide demand
While prices fluctuate from place to place, a constant theme was the increase in investment demand, Mr Portaro said.
The investors and the people working on their behalf to find houses are on the hunt for rental properties, and the regions are the most profitable place to do that.
“It really is investment demand [driving prices],” he said.
It is growing in some areas too, especially Mildura, Albury-Wodonga, Ballarat and even Swan Hill.
“A year ago I sold my first house to a buyers advocate [in Mildura],” Mr Portaro said.
“It was probably the first in my career.
“We’ve now got about 160 [buyer’s advocates] on our books — we’ve gone from zero to 150[-plus] in a year.”
