Victorian towns: house prices doubled dramatically:
House prices have more than doubled in several Victorian regional towns over the last decade. This trend is driven mainly by lifestyle and work-life balance considerations.
According to Domain data, the local government areas with the largest increases over the ten years leading to June include Alpine.
Alpine saw a remarkable increase of 171.8 percent, while Indigo experienced a 140.7 percent rise.
Furthermore, Murrindindi recorded a notable increase of 128.8 percent, and Hepburn’s prices rose by 134.6 percent during this time.
Although the pandemic accelerated the movement of Melburnians into these regions, some areas experienced growth outside this period.
Additionally, certain local government areas recorded even larger price increases than others. Dr. Nicola Powell, Domain’s chief of research and economics, explains that lifestyle locations have a significant attraction.
“What you have in these key areas,” she noted, “are desirable sea-change and tree-change locations that are drawing buyers in.” The combination of affordability and high demand also plays a crucial role in this trend.
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“The affordability factor has significantly increased demand in certain locations,” Powell stated. “People are now searching for a better work-life balance.”
Moreover, she mentioned, “Individuals continue to work in hybrid models. During the pandemic, this opened up new residential possibilities.”
This shift allowed many to explore more affordable regional areas. Liz Ritchie, CEO of the Regional Australia Institute (RAI), noted that this internal migration trend is now sustained.
Her research indicates that, in the year leading to June, one-third of city dwellers who relocated chose regional Victoria. Like Powell, Ritchie emphasized that affordability and lifestyle are major driving factors in this migration.
Additionally, space and job opportunities in these areas attract many new residents. “There is a robust jobs market for professional roles in regional Australia,” she explained.
In regional Victoria, nearly 11,000 jobs were advertised online in August alone. Furthermore, in many regional communities, individuals can earn a median income comparable to, or even higher than, capital city suburbs.
“Moreover, capital city housing prices have skyrocketed, making them unaffordable for many. Although regional areas have also seen price increases, they remain more affordable overall.”
While units and holiday investments continue to be popular, Alexander noted that more local owner-occupiers are now purchasing homes.
“What we love at the moment is the chance for locals to buy their new homes,” he explained.
Post-lockdown, many local buyers faced significant challenges. However, with an increase in available properties and stabilizing prices, it’s encouraging to see homes being sold to owner-occupiers.
Jamie Horne, Principal of Indigo Real Estate, mentioned that lifestyle is also a major attraction within the Indigo LGA. This area includes Beechworth and Rutherglen.
“The abundance of walking and riding trails, along with the proximity to ski fields, are major draws,” he stated.
Additionally, he highlighted foodie attractions, wineries, and a strong sense of community. Safety and family security are also important factors for potential buyers.
“Many regional buyers and homeowners can work from home successfully,” he added. They excel in their roles with metro, national, and international companies.
Moreover, many are relocating to be closer to family and friends who have also moved. While Melburnians accounted for 70-80 percent of buyers in recent years, they now represent only 20-30 percent.
Consequently, the majority of buyers are now local owner-occupiers. Notably, many residential and commercial investors are absent or selling their properties.
