- Locations such as Geelong and Bendigo are still performing well.
- Affordable regional cities that are well connected to Melbourne by road or rail are seeing good results.
- Investors may be deterred by the latest changes being made to the regulatory environment.
In his second contribution to The Property Tribune, Hotspotting general manager, Tim Graham discusses the regional Victorian real estate market.
Regional Victoria’s property market continues to perform well, with many locations predicted for further price growth in 2024 off the back of solid transaction numbers.
Research by Hotspotting shows that two-thirds of locations are now recording solid transaction numbers, which is a sign of good buyer demand and can lead to further price growth.
Hotspotting general manager, Tim Graham, says while values are not rising as dramatically as the capital city has recently, locations such as Geelong continue to power along.
Weekly asking prices for 3220, including Geelong
“Geelong continues to be a market leader in Victoria, with most of its suburbs on board with the state’s recovery, led by locations such as Armstrong Creek and Charlemont.”
Tim Graham, Hotspotting
Weekly asking prices for 3550, including Bendigo
“Bendigo has an equally positive market, with strong buyer demand for affordable suburbs like Eaglehawk, which has a median house price of $515,000 – a price level that’s impossible to find in the Greater Melbourne area.”
Weekly asking prices for Melbourne
Graham said Ballarat was a little less “bullish” but, that was to be expected as it has experienced substantial growth in the past five years.
“The Cardinia LGA on the south-eastern fringe of Greater Melbourne has good momentum, led by the towns of Officer and Pakenham.
“And the Mitchell LGA, on the northern outskirts of Greater Melbourne, continues to attract buyers from the capital city.”
“Overall, these locations provide affordable options in strong, growing regional cities which are well-connected to Melbourne by road and rail.”
Graham said while the market is performing well, he feared more investors will leave the Victorian market in the coming months, as the State Government continues to treat property as a “cash cow” to pay down its Covid debts.
From 1 January 2024, the tax-free threshold on investment properties was reduced from $300,000 to $50,000, and the rate will increase by 0.1% of the value over $300,000.
There will also be a temporary fixed charge for the tax eligible of $500 for land worth $100,000 or below, while more expensive landholding will incur a $975 fixed fee.
From January 1, 2025, a 7.5% levy, will be imposed on properties listed on short-stay accommodation platforms.
“These new fees and charges may help the State Government reduce its bottom line, but effectively they are also making the housing crisis worse but discouraging investors who typically provide the majority of rental properties in Australia,” said Graham.
“We’ve already heard of investors selling up. They are sick of all the additional taxes and charges. Those who retain their properties are also battling high interest rates and those costs will inevitably end up being passed onto renters.”