Melburnians “over city life” are helping drive bumper house price growth across regional Victoria.

Three country towns and two Ballarat suburbs notched median house price gains of more than 20 per cent last year, according to the Real Estate Institute of Victoria.

Loch Sport was the best of the lot, with the Gippsland coastal town’s typical house now worth 32.4 per cent more than it was a year ago, at $225,000.  Another seaside spot, Wonthaggi, skyrocketed 29.1 per cent to a $348,500 house median, with western Victorian town Maryborough rising 26.6 percent to $250,000.

Ballarat’s Wendouree and Golden Point soared 25.7 per cent to $320,000 and 21.3 per cent to $370,000 respectively.

Wallan, Kyabram and Geelong suburbs Corio, Armstrong Creek and Grovedale rounded out the REIV’s regional growth stars of 2018.

Golden Point was the strongest finisher to the year, with its median jumping 11.6 per cent in the December quarter alone, followed by Irymple (up 9.8 per cent to $351,500) and Daylesford (9.1 per cent to $600,000).

REIV president Robyn Waters said regional Victoria’s property market shone brightly, with the house median jumping 5.5 per cent to $401,000, in amcomparatively tough year for the greater Melbourne market.

CShell Real Estate director Rachelle Potts said affordability was one drawcard bolstering Loch Sport’s market — but an influx of Melbourne buyers could also be put down to people getting “over city life”.

Ms Potts said while holiday home-hunters previously made up nine of 10 Loch Sport buyers, five out of 10 were now seeking permanent homes.   “They’ve had enough of city life. They come to Loch Sport for holidays, fall in love and buy a house while they’re here,” she said.   “Our permanent population was about 700-750 in 2017, now we’re up to almost 1250 people.”

Melbourne’s high crime rates and hustle and bustle had been notable turn-offs driving buyers towards the “laid-back lifestyle” Gippsland’s coast offered, she said.  Many of the new residents worked in nearby Sale.

Ms Potts said the increased buyer interest had translated to price growth, with the likelihood of getting a house for less than $200,000 “pretty much gone”. Below $300,000 was still a possibility though.

Biggin & Scott Ballarat director Francesca Nicol said Golden Point was still good value compared to red hot suburbs like Soldiers Hill, which had just about “tapped out”.

And Wendouree had been boosted by improvements to the basketball stadium, the popularity of Ballarat Grammar and its top shopping infrastructure.

Ms Nicol said Black Hill was a suburb to watch in 2019, having seen a rise in buyer interest in recent months, with Melbourne homebuyers and investors set to remain key players in the Ballarat market overall.
“Ballarat’s definitely changed. We have heaps of great restaurants, a vibrant arts scene, and a far more relaxed family lifestyle,” she said.

REGIONAL VICTORIA GROWTH STARS
Of 2018
1. Loch Sport: median house sale price up 32.4% to $225,000
2. Wonthaggi: up 29.1% to $348,500
3. Maryborough: up 26.6% to $250,000
4. Wendouree (Ballarat): up 25.7% to $320,000
5. Golden Point (Ballarat): up 21.3% to $370,000
6. Wallan: up 19.4% to $507,500
7. Corio (Geelong): up 19.4% to $370,000
8. Armstrong Creek (Geelong): up 19.1% to $525,800
9. Kyabram: up 18.4% to $290,000
10. Grovedale (Geelong): up 17.9% to $505,000

Of the December 2018 quarter

1. Golden Point (Ballarat): median house sale price up 11.6% to $370,000
2. Irymple: up 9.8% to $351,500
3. Daylesford: up 9.1% to $600,000
4. Newborough (Ballarat): up 7% to $251,500
5. Ararat: up 6.8% to $214,500
6. Creswick: up 6.7% to $357,500
7. Maryborough: up 6.4% to $250,000
8. Yarrawonga: up 5.7% to $382,500
9. Wendouree (Ballarat): up 4.9% to $320,000
10. Bell Post Hill (Geelong): up 4.9% to $501,500
Source: REIV
Samantha Landy