October 1, 2024 UFinancial

Victorians embrace regional property boom as affordability drives demand

The rising demand for regional properties

Victoria’s real estate market is witnessing a significant shift as young first-home buyers increasingly seek affordable housing in regional areas.

According to recent data from the Australian Bureau of Statistics (ABS), first-home buyer loans in Victoria soared to 4,202 in July— the highest number in nearly two years. This surge reflects growing confidence among young buyers and a trend towards exploring housing options beyond Melbourne.

Nationally, the Commonwealth Bank of Australia and the Regional Australia Institute report that the flow of people from cities to regional areas is now about 16 percent above pre-pandemic levels. The Regional Movers Index indicates a 27 percent increase in people moving from cities to regional areas compared to those moving in the opposite direction during the last June quarter. Over the past year, 11.2 percent of movers have relocated from cities to regions, with three-quarters settling in NSW or Victoria, up from half of all movers last year.

Government incentives like the First Homeowner Grant and stamp duty exemptions are boosting this trend. Regional hotspots such as Ballarat, Bendigo, and Geelong are seeing heightened interest from first-home buyers eager to take advantage of lower property prices. Greater Geelong, in particular, has emerged as the most sought-after regional Local Government Area in Victoria.

home loan mortgage broker

In contrast to Melbourne’s median house price of over $900,000, regional Victoria offers more affordable options. Geelong’s median house price is $720,000, while Ballarat and Bendigo are even more budget-friendly at approximately $550,000 and $490,000, respectively. This affordability makes homeownership accessible for young buyers who might be priced out of Melbourne’s competitive market.

The work-from-home trend, accelerated by the pandemic, has also contributed to this shift. Many Victorians now have the flexibility to work remotely, making it feasible to live in regional areas while maintaining their careers. This flexibility enables buyers to enjoy a better lifestyle balance without sacrificing their job connections in Melbourne.

As government incentives persist and regional prices remain appealing, young Victorians are increasingly finding their path to homeownership in the growing communities of regional Victoria. This shift is reshaping the state’s property market, driven by a desire for affordability and a better quality of life outside the city.

If you’re in the market for a new home or want to check your current loan’s health, click here!! Explore with UFinancial today!!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.

Subscribe to our newsletter to read about ‘All things finance’

At UFinancial, we love talking about finance-related matters. From home loans and refinancing to financial planning, investing, and tax.

author avatar
UFinancial
Google Rating
5.0
Based on 325 reviews
js_loader

Selling Your Home Guide

Name

Renovating Your Home Guide

Name

Paying Off Your Home Guide

Name

Building a Home Guide

Name

Professional Loans Guide

Name

Self Managed Super Fund Lending Guide

Name

Free Investment Property Analysis

  • This field is for validation purposes and should be left unchanged.

Free Property Report

  • This field is for validation purposes and should be left unchanged.

Talk to us today

  • (e.g. 0422999222 or 0396869087)
  • This field is for validation purposes and should be left unchanged.

Download our free Property & Investment tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Construction Guide

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Refinancing tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your property investor tax checklist

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your free budget template

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download your tax checklist

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Home Loan tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Download our free Money Management tips

Enter your details below to download

  • This field is for validation purposes and should be left unchanged.

Refer a Friend

  • (e.g. 04222999222 or 0396869087)
  • This field is for validation purposes and should be left unchanged.

Let's talk about commercial and asset finance

"*" indicates required fields

(e.g. 0422999222 or 0396869087)
This field is for validation purposes and should be left unchanged.

Accounting & Tax

What are you interested in?

  • This field is for validation purposes and should be left unchanged.

Subscribe to our newsletter

Financial news, blog posts, special events, giveaways and promotions. – please register below.

Let's chat about your car loan options

Car loans

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Let's chat finance

Financial planning

  • This field is for validation purposes and should be left unchanged.

Let's chat about a new loan

Upgraders

  • This field is for validation purposes and should be left unchanged.

Let's chat about property investment

Property Investors

  • This field is for validation purposes and should be left unchanged.

Let's chat about your refinancing options

Refinancers

  • This field is for validation purposes and should be left unchanged.

Let's chat about a loan for your first home

First Home Buyers

  • This field is for validation purposes and should be left unchanged.