As the dust settles post election, regional Victoria’s property market is well placed to perform

WITH the dust settled from the federal election, interest rates and inflation remain a concern for homebuyers.

Housing affordability and first home buyer policies emerged as central political battlegrounds in the lead up to the election and now it is time for the government to take action.

With Australian house prices rising by 39.1 per cent over the past five years, and wages failing to keep pace, many buyers now face a decade-long journey just to save a 20 per cent deposit based on the 2024 State of the Housing System report.

However, according to Buxton Real Estate Group, policy and political promises are only part of the picture.

Marcus Williams, CEO of Buxton Real Estate Group, believes the property market will continue to offer strong opportunities with the reappointment of the Labor Government.

“Affordability is a real and pressing issue, especially for first home buyers, but what we’re seeing across Victoria is resilience in the market,” he said.

“Real estate continues to be driven by job growth, infrastructure, people’s life stages, and economic fluctuations.

“At Buxton, we’re seeing continued demand in key growth corridors and regional hubs, which shows that buyer confidence is still very much alive.”

This confidence is supported by the broader economic and infrastructure outlook and according to the Victorian Government’s 2024–25 Budget, the state is investing more than $2 billion into regional infrastructure, services and projects, including $700 million to extend the Victorian Homebuyer Fund, helping accelerate more Victorians into home ownership.

The budget also includes $107 million to progress housing initiatives, and $197 million for homelessness support services, demonstrating a clear focus on improving housing access and affordability.

Buxton Geelong Group director Matt Hunt said that the Geelong property market is showing early signs of momentum following the recent election, with growing confidence from both buyers and investors.

“New government policies, such as the 5 per cent deposit scheme and the ambitious goal of building 100,000 homes, are helping fuel this optimism,” Mr Hunt said.

“These measures are particularly beneficial for first-home buyers and are expected to push prices higher in the coming months.

“However, as we discussed prior to the election, there are bigger factors at play, such as anticipated interest rate cuts, which will likely have an even more significant impact on the market.”

Overall, Buxton Real Estate Group report that commentary from the regions point to strong demand, and post-election developments, along with new initiatives for first home buyers, that are all supporting another surge in activity.

However, they still see many buyers remaining cautious and are taking a “wait-and-see” approach, closely monitoring how new policies and interest rate changes will affect prices and availability.

“For those considering purchasing, now might be one of the best times to buy in Geelong before potential rate changes take effect,” Mr Hunt concluded

In the growing regional centre of Bendigo, Buxton Bendigo Principal and Senior Auctioneer Matt Leonard said that there’s definitely a sense of stability returning to the market now that the election has passed.

“While activity remained strong throughout the campaign in our region, the result has brought a clearer outlook, which always helps with buyer and investor confidence,” Mr Leonard said.

“The new government’s housing and economic policies aimed at accelerating housing supply and improving affordability are welcome, especially in regional centres like Bendigo.

“Easing planning restrictions, along with targeted development incentives, could go a long way in addressing the imbalance between housing demand and available stock.

“We haven’t seen momentum drop off, if anything, there’s renewed energy in the market post-election.”

In Victoria’s second biggest regional centre Ballarat, Peter Burley, Director at Buxton Ballarat, says that while elections can create market hesitation, the fundamentals of real estate remain unchanged.

“There’s no doubt that the election chatter caused a degree of uncertainty as people want to know what’s changing before making big decisions,” Mr Burley said.

“With all that now done and dusted, the reality is, life doesn’t stop, and people are still upsizing, downsizing, relocating for work, or making decisions around family needs.

“Our approach has always been to focus on what we can control: clear communication, honest advice and delivering value to our clients, that’s how you succeed in any market.”

Ballarat is well placed to benefit from the state’s $186 million investment in rural and regional healthcare, including upgrades to Ballarat Base Hospital, further enhancing liveability and long-term demand in the area, a city to watch.