Regional VIC Property Market Update September 2020

Mildura Property Update

With spring approaching, agents are reporting that they are expecting a continued increase in listings, however the extent of this improvement may depend on how long the current COVID-19 restrictions last. Listings and sales volumes declined throughout April and May, with vendors initially reluctant to sell in a time of great economic uncertainty, but then steadily recovered in June and July. The median sale price has remained steady throughout 2020 at around $315,000, indicating that although sellers initially showed some hesitancy to offer their properties to the market, buyers are still willing to purchase at regular levels. While Mildura has so far been fortunate to escape any significant COVID-19 outbreak, we are currently in the middle of another round of stage 3 travel restrictions and depending on how long these restrictions continue, this could deter some vendors and purchasers. Permits are needed to travel from Victoria into neighbouring New South Wales, making viewing open inspections on different sides of the Murray River a little more challenging.

There is also expected to be a continued period of people not being able to relocate to or from Mildura. This reduced movement of people will impact all price brackets.

The main sales activity continues to involve properties around the median sale price, with minimal higher-end listings being presented to the market during recent months. This could indicate that some homeowners are reluctant to test the market in the higher end price range where there is a smaller number of potential buyers and a worry that buyers will be either less prevalent or less willing to commit in these uncertain times.

Dispelling this view is the recent sale of 10 Grandview Way, Mildura, which was advertised with an asking price range of $850,000 to $920,000 and was under contract for $900,000 within two weeks of the initial listing.

This indicates that there is a pool of buyers at the higher end of the market, however the quick sale could also reflect the limited number of listings within this price range, therefore increasing the competition between buyers in this market.

Jake Garraway
Residential Valuation Manager

Mount Gambier Property Update

Mount Gambier’s property market will soon be heading into spring which typically sees an increase in listing numbers. Vendors typically hold off with the poor weather in winter often decreasing foot traffic at open inspections.

Since COVID-19, agents have advised that listing numbers have decreased however buyer demand has increased. Agents are seeing strong demand for most property types with a number of sales occurring off market or going to highest and best offers. Agents are reporting out of town buyers are looking to Mount Gambier for affordability and to escape the city life.

The government grant of $25,000 has seen a huge uptake of land sales with many subdivisions which had seen extended selling periods sell all their available land in a weekend.

A recent sale occurred off market at 41 Ferrers Street, Mount Gambier. The property achieved a sale price of $610,000 which is up from its previous sale price in 2017 of $565,000. Properties in sought after locations are seeing strong demand with a number being sold before hitting the market.

Since COVID-19 we are yet to see a significant impact in the residential market with demand currently stronger than supply. Agents are reporting that there are a number of properties waiting to be listed in spring so we will be watching closely on how this impacts values.

Adrian Castle
Certified Practising Valuer

Warrnambool Property Update

The Warrnambool residential market is in a stronga position heading towards spring, with increased buyer enquiry reported across a range of price points. Local agents are reporting a growing demand from Melbourne based buyers. While out of town buyers are not uncommon in the

Warrnambool market, it is interesting to note that the price points are lower and locations a little less desirable than is typically expected from these buyers. A recent example highlighting this broader interest away from the higher quality inner city dwellings and those with ocean vistas is the sale of 23 Daltons Road, Warrnambool.

This two-year-old dwelling which sold in early August for $649,435 featured four bedrooms and two bathrooms. Four of the first six offers made in the opening week of advertising had reportedly originated from Melbourne based parties. This indicates strong interest for a dwelling which did not offer anything above and beyond the standard fit-out of similar aged properties and was not situated in a blue-chip location.

The state of the COVID-19 situation for Victoria and more specifically metropolitan Melbourne come spring time will have a huge influence on the markets of beachside and tourism-driven communities such as Port Fairy, Port Campbell and Peterborough. The markets of these communities are noted for seasonal surges that arrive with the swarms of holiday makers. Should the COVID-19 situation worsen, these markets could be facing a period of relative dormancy this spring.

Adrian Castle
Certified Practising Valuer

Shepparton Property Update

The local market is coming out of the dormancy of the double whammy of both COVID-19 and winter and it is the strongest it has been in memory (aside from the boom of the early 2000s with 105 per cent loans on offer). A number of agents are reporting that listings are very scarce and that overall, the number of sales are down but the buyers are abundant and ready to go, creating strong competition for vendors who do take the plunge and put their home on the market during the current economic climate. We are also seeing a flurry of owner-occupiers looking to relocate from the major cities as they can now work remotely.

Winter had a rush of activity with the federal government’s Builder Boost which saw in the vicinity of 180 blocks of land sold in a six to eightweek period, when the usual is around ten to 15 in a month. This will inject a huge amount of money into the local building economy for the next 12 to 18 months.

A few small developers have tried their hand at selling spec homes and have had some good results. This home (pictured) is close to the hospital and overlooks a park. It sold for $465,000 without landscaping after being advertised online and was snapped up in a week.

Luke Jorgensen
Property Valuer