Victorians flock to the country for lifestyle, affordability

Date: 28 Jan 16

Regional Victoria was the state’s main growth driver in median prices in the December quarter, outstripping Melbourne.

REIV data shows house prices in regional Victoria rose 2.2 per cent in the last three months of 2015 to a median of $353,000, up from $345,500 in September. 

The price of units and apartments also increased in December, up 2.3 per cent to a median of $268,500.

Meanwhile, growth in Melbourne moderated with the median house price down 0.1 per cent in December to $718,000.

REIV Chief Executive Officer, Enzo Raimondo, said price growth in regional areas appeared to be driven by willingness by city dwellers to live further from the Melbourne CBD and commute - and by a new trend, with city dwellers migrating from Melbourne to live full-time in country areas.

“We’ve seen prices in major regional areas within 90 minutes of Melbourne grow in price, suggesting city commuters are looking further afield for lifestyle and value reasons,” he said.

“Many regional centres within commuting distance of Melbourne are increasingly sought-after by those priced out of the Melbourne market.” 

Mr Raimondo said a further, interesting trend is for price growth in towns and cities further from Melbourne, in the most recent quarter.

“We’ve seen growth in larger regional centres further from Melbourne in the final few months of 2015.”

These include Bairnsdale, Echuca, Swan Hill, Mildura and Warrnambool, he said.

“This latter trend is more likely being driven by homebuyers looking to migrate to regional areas to work or retire in regional Victoria, with many seeking to swap the city for the more relaxed living in the regional and rural areas.”