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Bendigo and Central Victoria property market scorecard

Bendigo and Central Victoria property market scorecard

By SIMON PRESSLEY

Here at Propertyology we conducted a study to compare the historical property market performance of each of Australia’s 550 local government authorities (LGAs) between 2000 and 2014. Given that some property markets have higher rates of growth and others have higher rental yields, we calculated the “total return” (average annual growth rate plus rental yield) and then ranked the LGAs from 1 to 550 based on this performance.

Ranked 209th out of a total of 550, Greater-Bendigo was among Australia’s top 20 per cent when compared to the rest of Australia.

The median price for a house in Bendigo has increased at an average of 8.3 per cent average annually, from $98,500 at the start of 2000 to $320,000 at the end of 2014. Average rental yields of 4.7 per cent resulted in a total return of 13 per cent.

Bendigo’s population has grown by an average of 1.5 per cent over the last decade, lower than the national average of 1.6 per cent.

Of the 80 LGAs across Victoria, the small shire of Hindmarsh was the best performed property market, ranked 26th in Australia. Ararat was another surprise-packet performer, ranked 50th, even though its population actually declined slightly over the last decade.

Very affordable housing and a diverse economy made up of health, retail, financial services and manufacturing have contributed to Bendigo outperforming several bigger profile LGAs.

Bendigo-map-300x215
Central Victoria was the region that performed quite strongly over the last 15 years. Ranked 92nd in Australia, Mount Alexander was the best performing property market. Other LGAs within the region to make Australia’s top 20 per cent were Buloke (134th), and Ballarat (209th).

Outside the top 20 per cent were Greater-Geelong (228th), Loddon (240th), Macedon Ranges (261st), Mitchell (271st), Warrnambool (316th), Greater-Shepparton (362nd) and Campaspe (367th).

Proving that population mass isn’t the be-all and end-all of property market performance, the City of Melbourne was an underwhelming 377th out of 550 LGAs in the country.

Bendigo_PropertyMarket_1990-2014

Over the last 12 months, the Greater-Bendigo median house value has increased by a modest 1.6 per cent, although outside Sydney and Melbourne, most property markets across the country have been sluggish. There were 1,870 property sales for the year ending May 2015, which is similar to the previous year. There’s been a general increase in residential construction and, while that’s a good thing for jobs, the extra housing supply does contain property price growth. It is a distinct buyer’s market at the moment.

Vacancy rates are currently on the high side – approximately 4 per cent – but the outlook remains sound. The new Bendigo hospital will create extra jobs for the Bendigo economy and the regional rail link increases access. We anticipate heightened investor activity in strong regional centres like Bendigo over the next couple of years.

With a population of 107,000 people, Australia’s 20th biggest city has essential health infrastructure, tertiary education offerings and a quality commerce and retail hub. Bendigo services the broader Goldfields region.

About Simon Pressley

Simon Pressley is managing director of Propertyology, an REIA Hall of Fame inductee, property market analyst, accredited property investment adviser and buyers' agent. Propertyology works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.


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