Bendigo Times | Bendigo Property Market Outlook

Bendigo Property Market Expected to Keep Outperforming Melbourne, Says Matt Bell

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Bendigo Times journalist Adam Carswell reported on Oliver Hume Chief Economist Matt Bell's address at an Urban Development Institute of Australia housing supply industry briefing at La Trobe Art Institute. Bell said the Bendigo property market is expected to continue outperforming Melbourne while remaining sensitive to interest rates. He added that affordability and the feasibility of new developments remain key challenges.

Bendigo House Prices Rise as Melbourne Falls

‍Bell described the Melbourne residential market as the weakest in the country, noting nine months of house price falls and an annual decline of around 5 per cent. By contrast, he said Bendigo prices were running at around 10 per cent positive based on data through to July, compared with something like negative 2 or 3 per cent for Melbourne.

Bell said Bendigo's median house price is now around $635,000, compared with $450,000 to $475,000 a year ago. He noted the downside is that moving to a regional area is no longer the affordability solution it once was. Before COVID, Bendigo's established house price was around 50 to 60 per cent of Melbourne's; it is now around 74 per cent.

Oliver Hume's Outlook for Regional Victoria

‍Bell expects underlying demand drivers to remain robust, pointing out that population growth remains the highest in the country. He said those people need to be housed, and that supply can only be constrained for so long before it affects people's ability to enter the market.

Looking ahead, Bell said Melbourne land prices and land buying look likely to remain flat or decline over the next couple of months. He expects regional Victoria, including Bendigo, to perform better, although the market will ultimately be driven by interest rates and activity in the near term.

Read the full article: Bendigo Times

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