SWAN Hill’s rapid property values have accelerated in the September quarter well above regional Victoria’s price rise.
The median house price in the rural city rose 6.9 per cent in the three months to the end of September, following a close trend that has seen prices rise by almost 10 per cent over the previous 12 months.
The Swan Hill price increase, which resulted in a median sale price of $373,000 was well above the regional Victoria’s price rise of 2.4 per cent, but below the median house price of $570,000, according to the Real Estate Institute of Victoria (REIV).
There was no data available for Robinvale.
Industry sources said property in north-west Victoria remained a sought-after commodity.
LJ Hooker Swan Hill principal John Monahan believed the median price would continue to climb as lockdowns ended and borders reopened.
“There will continue to be price inflation for the reasonable future given the pressure that will come from metropolitan buyers as they can now get to regional markets for inspections,” he said.
“There will not necessarily be a correlation between increased property supply and the lockdown easing and I don’t anticipate any escalation in property supply any time soon.”
The REIV quarterly report showed an annual growth rate in regional Victoria of 22.8 per cent for houses and 18.8 per cent for units, the highest annual growth recorded for over a decade.
Median house prices in Geelong, Newtown and Lake Wendouree have reached $1 million for the first time and Wangaratta (19 per cent growth), Lucas (14.1 per cent) and Point Lonsdale (13.4 per cent) are among the state’s top-growth areas.
Mr Monahan wasn’t surprised by the seven-figure sum, but didn’t expect it to be seen across other postcodes.
“That benchmark has only occurred in very few markets and there will not be a lot of regional postcodes joining that list,” he said.
Mr Monahan didn’t believe Bendigo, Ballarat and Geelong were squeezing themselves out of the market.
“There are any number of suburbs around Ballarat and Geelong where median home prices are far lower and those people looking in those areas already have ties to those cities,” he said.
He said homes were also selling before they hit the market.
“Absolutely, however that is not necessarily in the best interests of all parties in every case, but if vendors simply want a very quick sale there has never been a better time,” Mr Monahan said.
He said “without doubt” people recognised the practical reality of working from home.
“They appreciate that if it can be done an hour from the office, it can be done four hours from the office,” Mr Monahan said.
“Regions like Swan Hill will benefit dramatically from this phenomenon.”
Estimates show more than 30,000 Melbourne residents left the city in the 12 months to March this year following the COVID recession and greater working-from-home flexibility.
Nutrien Harcourts BR&C real estate manager Darren Scarce said it was “difficult to predict” if house prices would continue to rise as there were “no signs that the market was slowing down”.
“I would expect to see continued growth in prices given current interest rates and demand,” he said.
“Supply is still an issue given the current level of demand. I expect this demand to continue but whether supply improves remains to be seen.
“Certainly buyer enquiry levels from Greater Melbourne have increased, however, geographically, I doubt we will see the same level of buyer activity as Bendigo, Ballarat or Geelong.
“There has been an unprecedented migration of Melbourne residents leaving the city over the past 12 months.
“Given the restraints that have been imposed on them, who can blame them?
“I think a lot of people have realised they can work just as efficiently remotely as they did from an office environment therefore a “tree change” is more appealing than ever.”
Noel Watson, from Noel Watson Real Estate, said there were record low levels to sell and nothing to rent.
“Median price will climb slowly for a bit longer, with no impact on lockdowns and border closures,” he said.
“Supply is a major issue everywhere in Victoria, and I can’t see any change soon.
“Builders are booked well in advance, with timber in short supply.”
REIV president Adam Docking said price growth was reflective of high demand during a period that had a relatively lower number of listings.
“The September quarter also had the most number of days of complete COVID-19 lockdown, which had significant impact on the real estate market’s workings and, ultimately, resulted in less stock and fewer transactions,” Mr Docking said.
Mr Docking said a confluence of important events was making regional Victoria more appealing to Victorians.
“The trend in tree or sea change investment and relocation continues with flexible and hybrid workplace arrangements and lockdowns attracting more people to a regional lifestyle.”
Swan Hill Rural City Council allocated 17 blocks as part of the release of stage 13 at popular Tower Hill on Monday.
Mr Scarce said the release of new subdivisions was always critical and well received in the local market.
“I am not in a position to comment on the response to the release of stage 13 at Tower Hill as the local agents were not appointed by council,” he said.
