- Double-digit annual property price growth for Bendigo
- Asking prices more than 10% higher than last year
- Diverse economy close to Melbourne
Prior to the pandemic, Bendigo wasn’t high on the list of potential locations for strategic property investment for many people.
That’s not to say that regional Victoria wasn’t in the sights of investors, but that places such as Geelong and Ballarat were more favoured.
However, quietly in the background, Bendigo has been evolving to become a location of first choice for many new residents and investors as well.
Part of the reason for this was the upgrading of the Bendigo Airport in 2016, which resulted in an increase in the daily flights to the region, especially from Sydney.
Not long after, its comparative housing affordability started to become one of its many calling cards – on top of its diverse economy, located less than two hours’ drive or train journey from Melbourne.
Today, the median house price in Bendigo remains half of Melbourne, which is reason enough for plenty of people to make the move or to invest in property there.
In the early days of the pandemic last year, there were suggestions that property prices could soften because of the economic fallout, and in many places, they did do that temporarily – but not in Bendigo.
In fact, the median house price in the region has been on a steady increase since the second quarter of last year.
Bendigo (postcode 3550)
According to the Real Estate Institute of Victoria (REIV), the median house price in the region has increased between 14 per cent and 21 per cent depending on the specific location.
The median house price in North Bendigo, for example, has soared from $320,000 in the second quarter of last year to $436,000 a year later – that’s an increase of $116,000 or 21 per cent.
In Central Bendigo, the median house price has increased by 14.4 per cent over the same period, with its median rising from $500,000 to $572,000.
It was about this time last year that we started buying property for clients in Bendigo, because we understood the potential for capital growth that lay ahead.
Indeed, one of our clients recorded a price uplift of some 17 per cent in just three months.
But here’s the thing: we’re not buying in Bendigo anymore.
The early bird
Strategic property investment involves recognising the potential of a place before most other people, and making your move early, which is what we did last year.
Many of our clients look for affordable investment locations that are primed for capital growth, but which also return solid yields of around four and half to five per cent.
Bendigo offered both of these for much of the past year, but the strong price growth that we recognised was going to happen, and did, meant that the price points and the yields weren’t as attractive as they once were.
The asking sale price for houses in the region remains 11 per cent higher than it was last year, with it rising by nearly five per cent over the past three months alone, according to SQM Research.
Bendigo, which is one of the closest major regions to a capital city anywhere in the country, has it all when it comes to a diverse economy.
Plus, it is no doubt the beneficiary of plenty of new residents who have left Melbourne over the past year, due to lifestyle and affordability reasons.
However, we are always on the lookout for locations that offer the same potential for our clients before anyone else has recognised the same, which is why we ask: Where is the next Bendigo for investors?