Source : the age
Three regional Victorian areas have been named among Australia’s top affordable housing markets, as rising property prices in capital cities push buyers towards greener pastures.
Bendigo, Greater Shepparton and Wodonga are listed as the best affordable regional areas where “growth, value and lifestyle intersect” according to a new report by PRD Real Estate, Smart Moves: Regional Edition 2025.
In the report, which covers 10 regional markets, PRD Real Estate applied five criteria to identify the “most promising” areas for either home buyers or investors. They are affordability, sales and growth, rental yields, future development and employment strength.
In Victoria’s case, all three locations have house prices well below Melbourne’s median, which was $894,500 in the December quarter according to PRD. By comparison, median house prices in the same period were $580,000 in Wodonga, $570,000 in Bendigo and $490,000 in Greater Shepparton.
PRD Real Estate chief economist Dr Diaswati Mardiasmo described regional Victoria as “a world of opportunities”.
She said rising prices in Melbourne and loan conditions were prompting first home buyers to look elsewhere.
Bendigo offers an affordable alternative to Melbourne’s housing market.Credit: Eddie Jim
“Most of these [regional towns] are 40 to 45 per cent cheaper than Melbourne… You have a lot more choice if you are a first home buyer and [buying] under the first home grant … most of the stock in regional areas in Victoria fits underneath the price cap,” Mardiasmo said.
She said the areas listed also appealed to investors due to affordability and less competition.
“[Investors will have] a lower mortgage than in Melbourne, and also be able to then capitalise on a higher rental yield and lower vacancy rates,” she said.
“There’s going to be less competition in comparison to Melbourne, where there’s going to be thousands of units being built, and you’re going to have to compete with other investors.”
The median house prices across Bendigo, Wodonga and Shepparton ranged from holding steady to rising 3.2 per cent over the past year. At the same time, house rental yields for all three came in ahead of Melbourne metro’s 3.1 per cent.
Despite a post-COVID shift back to office life for some, Mardiasmo said regional migration was still popular thanks to employment opportunities and hybrid work flexibility.
“Some [tree-changers] have been able to juggle working from home quite a bit… Some have relocated completely and found a job that is within their area,” she said.
“There’s a lot of infrastructure development … social houses, hospitals, schools … solar energy, battery farms, renewable energy… There are jobs happening in regional areas,” she said.
Looking ahead, she sees conditions improving for more buyers to make the regional leap.
“With the federal election out of the way and potential interest rate cuts, we’re going to start to see some real pick-up in regional markets, which is why this is a golden opportunity to actually move,” she said.
Mark Boehm, director at PJ Murphy Real Estate, said Wodonga attracts young families, retirees and investors due to strong infrastructure and lifestyle perks.
“It’s a regional area and tourist attractions are nearby, it’s renowned for access to snow, rivers and waterways, wineries… there’s a lot around us and the climate is excellent,” he said.
“The city, Albury-Wodonga, has good infrastructure, health, schools, there’s plenty of work.”
He said Wodonga’s affordability was a major drawcard, particularly for those priced out of capital cities.
“What you can get here for $800,000 is pretty good compared to what you can get in the city,” he said. “You’re probably looking at a four-bedroom, two-bathroom home… on a 700- to 800-square-metre block, which you just won’t get in the city.”
Boehm said tree-changers were still arriving post-pandemic, with buyer demand high over the past few months.
“There’s a lot of first home buyers … and the tree-changers are young families through to early retirement age,” he said.
Damien O’shannessy, director at Bendigo Real Estate, said his buyer pool was diverse.
“A lot of people are coming back to where they grew up. Some people are just moving to be closer to family. And then people from smaller towns that are moving to Bendigo for work or health or to be close to family.
“We’ve had a lot of immigrants come from, say, Tarneit… they’re getting the same wage, life’s a lot simpler, and they’re saving $400,000 on a house,” he said.
O’shannessy said Bendigo was constantly developing with education and work opportunities.
“There’s new schools being built, and Bendigo Senior High’s one of the biggest in Australia,” he said.
“There’s a shortage of professionals, engineers, doctors, surveyors, there are plenty of jobs here if that’s the lifestyle you’re looking for.”
He said the traffic in Melbourne had been a big reason tree-changers made the move.
“People are saying, ‘I’m wasting my life sitting in a car in traffic.’”
