Regional Vic sees a dip in property prices

April 14, 2024 BY

Going up: Since March 2020 home prices in regional Victoria have grown 40.6 per cent. Photo: SUPPLIED

NEW PropTrack data reveals a slight cooling in Regional Victoria’s property market after four years of significant growth, with property prices falling 3.7 per cent from their April 2022 peak.

This downturn follows a period of substantial outperformance compared to Melbourne’s 17.2 per cent rise, with regional home prices surging 40.6 per cent since March 2020.

According to the report, this growth reflects various influences, including changes in supply and demand, demographic shifts, construction activities, adjustments in the rental market, and migration trends, framed within the larger economic and societal responses to the pandemic.

“Since COVID, the housing market has cycled different phases. Home prices fell as interest rates quickly climbed,” the report read.

The shift towards remote working and the affordability of regional properties encouraged demographic changes, with a notable increase in housing demand in regional areas compared to larger cities such as Sydney and Melbourne.

With population growth hitting its fastest pace in 72 years and a deceleration in housing construction, the report notes there’s a pressing need for effective solutions to address the housing shortfall.Countering migration concerns, Master Builders Australia CEO Denita Wawn advocates for more immigration to boost the construction workforce and ease the housing shortage. “At a federal level, the government’s priority should be growing the building and construction workforce,” Ms Wawn said.”Domestically, we cannot fill this gap. We need to think outside of the box with better apprenticeship incentives, reskilling migrants already in Australia, and a targeted international campaign to bring in skilled migrants.”

Wawn said inflation was starting to near its target range and that she expected a fall in interest rates which will lead to a more favourable investment market.

Federal Member for Corangamite Libby Coker said housing was a top priority.

“We know many people are experiencing housing challenges and we’ve introduced several measures to increase housing supply, support renters and homebuyers, and those most vulnerable to homelessness whilst also encouraging more Australians to take up a trade,” Ms Coker said.

“Last year, more than 24,000 students took up construction with our Fee-Free TAFE program and, with more places available this year, we’ll have more tradies to build more homes for Australian families.

“Housing is a real focus of the federal government. It’s vital to have a roof over your head, but we recognise it’s not an overnight fix which is why we’re pulling every lever possible.”

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