Bendigo property: COVID-fuelled tree change pushes up regional house prices

Bendigo house prices have experienced a boom as out-of-town buyers bid for a slice of the regions’ charms. Find out how your suburb fared.

The property boom has hit every home, with the latest Real Estate Institute of Victoria data showing growth in all Bendigo suburbs.

Bendigo‘s tree change market has been supercharged by the pandemic, with some suburbs experiencing a 40 per cent rise in house prices in 12 months.

Real Estate director Damien O‘Shannessy said compared to other regional centres Bendigo was undervalued at the beginning of 2020, but the pandemic had accelerated its growth.

Mr O’Shannessy said for years tension had been growing, “like a rubber band”, as Melbourne house prices spiked while Bendigo stagnated.

“It was stretched between those two different prices,” he said.

“There needed to be a catch-up.”

He said as the pandemic hit Bendigo “snapped”.

Mr O’Shannessy said low interest rates, high rental returns, increasing investor confidence and a surge in Melbourne residents fleeing the capital had fuelled the market.

He said historically a Bendigo property was on the market for an average of 60 to 70 days.

“Now in 17 to 24 days a property will be sold,” he said.

Real Estate Institute of Victoria data shows growth in all Bendigo suburbs.

December data revealed the biggest increases were in Bendigo’s north west, with Ironbark median house prices jumping by 40 per cent over 12 months to $392,800.

Spring Gully was the second fastest growing district, with house prices growing by a third to $517,500.

One of Bendigo’s most expensive suburbs has become even more pricey, with Maiden Gully house prices rising by 27 per cent.

The average Maiden Gully buyer spent $637,500 in December, $137,500 more than they would have paid in 2019.

Mr O’Shannessy said out-of-town buyers, particularly those fleeing Melbourne, were targeting the most expensive homes in Bendigo’s elite suburbs.

REIV data showed Junortoun, Strathdale, Strathfieldsaye, Ascot and Kennington all experienced double digit growth over the past 12 months.

Mr O’Shannessy said more of Bendigo was being swallowed up by out-of-town buyers with regional Victorians and Melbourne residents looking to relocate.

He said there had been a drastic shift in the out-of-town market, with Melbourne residents now making up almost 60 per cent of non-local buyers.

Mr O’Shannessy said regional centres like Ballarat, Geelong and the Surf Coast had experienced similar “tree changes” in previous years, but the pandemic had fast-tracked Bendigo’s growth.

Long Gully was the poorest real estate performer, with only a 0.5 per cent increase in median house prices.

How did your suburb rank?

December 2020 median house prices. Provided by Real Estate Institute of Victoria.

SUBURB	Median house price	Annual change
JUNORTOUN	$717,500	17.70%
MAIDEN GULLY	$637,500	27.50%
STRATHFIELDSAYE	$567,365	13.50%
STRATHDALE	$562,500	14.60%
BENDIGO	$538,500	4.60%
SPRING GULLY	$517,500	32.50%
ASCOT	$475,000	10.40%
MARONG	$461,500	6.10%
KENNINGTON	$460,000	22.90%
EPSOM	$420,000	16.70%
QUARRY HILL	$417,500	3.10%
IRONBARK	$392,800	40.70%
HUNTLY	$383,000	3.50%
FLORA HILL	$375,000	2.00%
KANGAROO FLAT	$375,000	11.90%
GOLDEN SQUARE	$373,500	13.20%
HEATHCOTE	$370,000	2.80%
NORTH BENDIGO	$361,750	17.50%
EAGLEHAWK	$360,000	9.10%
EAST BENDIGO	$347,000	4.20%
WHITE HILLS	$346,000	8.30%
CALIFORNIA GULLY	$330,000	12.80%
LONG GULLY	$290,500	0.50%

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