Why Regional Victoria Could Be the Property Gem You've Been Waiting For

Australia's property market has seen significant growth in recent years, but some regions, like Perth, might be nearing their peak. This leaves investors searching for the next big opportunity. Enter regional Victoria, a market ripe with potential for those seeking stable and sustainable growth.

Shifting Gears in Perth: Time to Look Elsewhere

While Perth was once the hottest property ticket, recent data suggests a slowdown. With a 25% drop in sales volume compared to the previous quarter and a decrease in buyer activity across Greater Perth, the market might be past its peak growth. Investors should focus on areas with room for long-term appreciation, not those experiencing a late-cycle surge.

Regional Victoria: A Market Primed for Growth

Regional Victoria presents an attractive alternative, offering several key advantages:

• Strong Economic Backbone: Victoria boasts a robust economy, and regional areas are expected to benefit from this stability. Population growth projections further indicate a rising demand for housing.
• Surge in Buyer Interest: Recent months have seen a significant increase in buyer activity across regional Victoria. This often precedes price growth, making it an opportune time to enter the market.
• Low Vacancy Rates and Rising Rents: Vacancy rates remain low in regional Victoria, indicating a healthy rental market. This translates to strong rental yields for investors seeking income generation.

Top 5 Regional Victorian Investment Hubs:

Based on recent data and growth potential, Hotspotting identified these five regional Victorian markets for investors to consider:

1. City of Greater Geelong: Geelong is experiencing rapid economic growth, fueled by billions of dollars invested in infrastructure projects. A major urban expansion plan catering to a projected population increase of 110,000 by 2050 further strengthens its appeal. Even with the cancellation of the 2026 Commonwealth Games, planned sporting infrastructure developments are still on track, adding to the city's attractiveness.
2. Mitchell Shire: This region offers affordability for investors while still demonstrating promising potential for capital growth.
3. City of Ballarat: Ballarat boasts a thriving economy and a strategic location, making it a well-rounded investment option.
4. Albury-Wodonga: This thriving border region benefits from strong economic ties with New South Wales and ongoing infrastructure projects.
5. Latrobe Valley: Traditionally reliant on energy production, the Latrobe Valley is undergoing economic diversification, creating new opportunities and attracting investment.

Geelong: A Case Study in Regional Growth

Geelong exemplifies the exciting potential within regional Victoria. Here's a closer look at the factors driving its growth:

• Massive Infrastructure Investment: Over $5.5 billion has already been invested in infrastructure, with a further $17.4 billion planned. This creates jobs, attracts businesses, and fuels demand for housing.
• Population and Economic Growth: Geelong's population and economic growth are exceeding national averages, solidifying its position as a thriving regional hub.
• Planned Urban Expansion: The city's ambitious urban expansion plan caters to a significant population increase, ensuring long-term sustainability and growth.

Conclusion

Regional Victoria presents a compelling opportunity for investors seeking long-term capital appreciation. With a strong economic foundation, rising buyer interest, and a healthy rental market, regional Victoria is well-positioned for continued growth.

While some areas in Australia might be nearing the peak of their property cycle, regional Victoria offers a chance to get in on the ground floor of a promising market.

By conducting thorough research and considering factors like infrastructure investment, economic outlook, and rental yields, investors can make informed decisions and potentially secure a valuable property gem in regional Victoria.