Capital growth in regional centres

While rises in Melbourne’s median house price have been well documented, new REIV data shows significant capital growth has also been recorded in multiple regional centres. 

The latest data showed substantial variation in the growth in house prices between regions and even between towns within those regions.

Wangaratta in Victoria’s north east enjoyed one of the state’s highest capital gains in the year to June 30 with median house prices there rising 26.9 per cent to $330,000, up from $260,000. 

Meanwhile Geelong, benefitting from its close proximity to Melbourne, recorded growth of 21.5 per cent over the year, pushing its median house price to $580,000. 

It was also good news for home owners in the Ballarat suburb of Canadian, where the median house price was up from $293,000 to $350,000 - an increase of 19.5 per cent. 

House prices in the coastal town of Barwon Heads also rose 19.5 per cent over the 12 months to a June median of $811,000. This figure was considerably higher than the metro Melbourne median of $706,000.

Yarrawonga, on Victoria’s border, recorded strong capital gains with its median price increasing 17.9 per cent over the year to $336,000, up from $285,000.

Other regional towns showing double-digit growth include New Gisborne, up 13.3 per cent to $575,000, Epsom, rising 12.5 per cent to $360,000 and Belmont, up 11.3 per cent to $400,000.

House prices in the Bendigo suburb of Flora Hill increased 10.7 per cent over the year to $335,000 while Daylesford’s median rose 9.9 per cent to $412,000.

A range of factors contributed to the increase in median house prices including transport links and commuting distance to Melbourne. 

Like Melbourne, regional centres are also recording an increase in the number of property sales. Mildura, in Victoria’s north west, had the highest turnover across the state with 519 sales in the year to June 30, up from 460 the previous year - a 13 per cent increase. 

Traralgon had regional Victoria’s second highest turnover with sales there increasing 7 per cent over the year to 348 sales. Warragul also experienced an increase in housing transactions, up 12 per cent to 235 sales. 

Other regional towns with a high turnover were Ocean Grove (246 sales), Wodonga (245 sales) and Highton (231 sales).