Regions see exceptional growth

New data has confirmed that the median house price in regional Victoria has recorded its largest annual increase since 2001.

Real Estate Institute of Victoria’s December quarter report shows that in 2021, the median house price in regional Victoria grew 27.0 per cent reaching a record breaking $565,000 over the year.

Units and Apartments in regional Victoria also grew, achieving an annual growth of 19.6 per cent bringing the median price to $395,950.

Bendigo central has seen a median increase of 32.3 per cent with a median house price of $570,000 and Ballarat central now sees a median of $695,000 up 26 per cent.

Central Geelong now sees a median house price of $960,000 which is up 26.6 per cent on the previous year, and Ocean Grove’s median is now at $950,000 being an 35.2 per cent increase.

On the Surf Coast, Torquay has seen close to a 40 per cent rise in value over the last 12 months with the median well on its way to surpassing $1,200,000.

REIV President Adam Docking said that the data reflects the enduring attraction of regional Victoria as a lifestyle choice following two years of COVID-19 restrictions.

Surpassing a median house price of $1,125,000 in the December quarter, metropolitan Melbourne maintained a steady growth with a quarterly increase of 4.2 per cent and 18.9 per cent annually – the highest annual growth in over a decade.

The data shows houses in middle Melbourne, the typical suburban family belt, achieved a $1,230,000 median price with a reported annual increase of 18.3 per cent.

Houses in outer Melbourne have experienced price growth for six consecutive quarters and with a median price of $815,000 are now 16.4 per cent more valuable than 12 months ago.

The number of homes that went under the hammer surged 144 per cent compared to 2020.

With 15,954 auctions and 12,794 sales in December quarter, it was the strongest ever performance for both auction volume and sales in any quarter.

Mr Docking said that he expects the market will soon begin to stabilise as some of the listing volume issues are addressed and buyers have more to choose from.

“The impact, if any, of the Omicron surge on the real estate market is yet to be fully understood,” he said.

“At this stage it’s too early to tell, virus safety is front-of-mind and Victorians are well adjusted to the protocols they need to prepare for when attending inspections.

“Major factors influencing the residential real estate market continue to be low interest rates, lifestyle choices as more people work from home and pent-up demand after the series of lockdowns over 2020 and 2021.”

Mr Docking emphasized the need for government to improve infrastructure investment to support this unprecedented growth in our regions.