- Many sister suburbs to major regional hubs featured.
- Home prices were typically affordable and around the $500K mark.
- An exodus from Sydney was observed.
The importance of developing new homes and getting more housing stock onto the market has been gaining ground.
This was strongly reflected in recent policy decisions that incentivised only new housing in various state and national policies announced this year, including stamp duty benefits, targeted funding for ‘well-located’ homes, and more. Other recent policy wins include the Housing Australia Future Fund.
While delivering shovel-ready land has its challenges, investor interest in new housing may be set to grow again as interest rates stayed at 4.10% for a third time.
Property experts have previously voiced concerns over high rates impacting the appetite of investors, potentially piling more pressure onto the already tight rental market.
Leaving Sydney for greener pastures
OpenLot.com.au CEO and co-founder, Qi Chen, told The Property Tribune that he had noticed a substantial exodus from the New South Wales capital.
“Across Victoria and Queensland, we’re seeing a strong increase of Sydney investors coming since the beginning of 2023. This is largely driven by the uplift of Sydney property value since Covid and investors are now tapping into their existing equity to make their next property investment purchase.”
“Regional Victoria & Queensland remains the hotspot for investors as it provides purchase value and rental yield.”
Qi Chen, OpenLot.com.au
This exodus has been previously observed in moving data by Muval, with Melbourne ranking as the number one place to move to in 2022.
Victoria’s top 20 suburbs for investing in new houses
| Rank | Suburb | Postal code | Potential yield | Vacancy rates | Typical rent |
|---|---|---|---|---|---|
| 1 | Echuca | 3564 | 7.20% | 1.8% | $760 |
| 2 | Wangaratta | 3677 | 6.27% | 1.0% | $500 |
| 3 | Wurruk | 3850 | 6.13% | 1.4% | $495 |
| 4 | West Wodonga | 3690 | 5.96% | 1.1% | $530 |
| 5 | Mooroopna | 3629 | 5.93% | 0.6% | $490 |
| 6 | Wodonga | 3690 | 5.70% | 1.0% | $510 |
| 7 | Korumburra | 3950 | 5.70% | 0.8% | $500 |
| 8 | Kangaroo Flat | 3555 | 5.64% | 1.4% | $490 |
| 9 | Hastings | 3915 | 5.54% | 1.2% | $600 |
| 10 | Horsham | 3400 | 5.51% | 1.0% | $445 |
| 11 | Mansfield | 3722 | 5.47% | 1.2% | $600 |
| 12 | Moe | 3825 | 5.44% | 1.6% | $450 |
| 13 | Portland | 3305 | 5.43% | 1.7% | $470 |
| 14 | San Remo | 3925 | 5.39% | 2.1% | $500 |
| 15 | Alfredton | 3350 | 5.38% | 1.8% | $450 |
| 16 | Frankston | 3199 | 5.34% | 1.5% | $565 |
| 17 | Stratford | 3862 | 5.33% | 1.2% | $480 |
| 18 | Traralgon | 3844 | 5.31% | 1.4% | $495 |
| 19 | Ballan | 3342 | 5.20% | 1.2% | $430 |
| 20 | Jackass Flat | 3556 | 5.14% | 1.2% | $470 |
Source: OpenLot.com.au.
Top five breakdown
The five best locations for investing in new houses, according to OpenLot, were regional Victorian locations.
Among the top 20, the only metropolitan location was Frankston, with two locations (Hastings and Ballan) less than 100 kilometres from the Melbourne CBD.
Echuca
Some two and a half hours north of Melbourne, houses in the suburb of Echuca are floating around the mid-$600,000 mark, according to SQM Research data.
Homes in the suburb had seen a steady rise in value up until mid-2021 when values skyrocketed from around $500,000 to as high as $700,000 in mid-2022.
Weekly asking property prices for 3564, including Echuca
Wangaratta
Heading eastward from Echuca, the suburb of Wangaratta is also some two and a half hours from the Melbourne CBD.
The quaint locale is known for its culture and arts scene, including a jazz and blues festival.
House prices have ebbed and flowed throughout Covid, with home prices recording a minor dip between 2019 and 2020, before seeing a minor peak of $440,000 in mid-2020. Home prices began to surge thereafter, hitting another minor peak of around mid-$500,000 in mid-2022, with the latest peak hitting the mid-$600,000s.
Weekly asking property prices for 3677, including Wangaratta
Wurruk
Located two and a half hours east of Melbourne, the locale is well placed to enjoy all the amenities of the major regional hub of Sale and all that the Gippsland region has to offer.
Home prices in Wurruk have been fairly flat over the past decade, gradually picking up around 2019. The suburb didn’t see a surge in prices until mid-2021 when homes were below the $400,000 mark, leaping to over $500,000 in 2022. After a minor dip, prices recovered to over $500,000.
Weekly asking property prices for 3850, including Wurruk
West Wodonga
Located some three and a half hours northeast of Melbourne, close to the Victoria-New South Wales border, the suburb of West Wodonga benefits from the amenities in nearby Albury and Wodonga.
Home prices in the suburb have been recording very mild price rises over the past decade, before briefly dipping as Covid hit. Thereafter, house prices varied considerably, but had an overall upward trajectory. Pre-pandemic, prices were around the $400,000 mark, with the latest well over $600,000.
Weekly asking property prices for 3690, including West Wodonga
Mooroopna
Sitting perfectly between Echuca and Wangaratta, the suburb of Mooroopna is well-positioned to benefit from the regional hub of Shepparton and its amenities.
Located some two hours north of Melbourne, the suburb is also well-placed along major roads and is well-connected.
Home prices in Mooroopna have followed similar trends to the above five suburbs, similarly seeing flat to small levels of growth across the past decade, before rising during Covid. While taking a dive back below $400,000 recently, home prices nearly hit $500,000 during the height of the pandemic.
Weekly asking property prices for 3629, including Mooroopna
~~
Before making any financial decisions, please do your own independent research, taking into account your own situation. This article does not purport to provide financial or property buying advice. See our Terms of Use.
