Merbein’s house prices skyrocket 29 per cent, smashing every other Victorian regional market

Merbein is now the state’s hottest regional property hotspot, with prices soaring as out-of-town buyers line up for a slice of the “boutique little town” just outside Mildura.

The town of Merbein is slated to become the home to the regions first alcohol and other drug rehabilitation facility.

House prices in Merbein are exploding, with the Mildura suburb now recording the fastest growth in regional Victoria, outpacing every other regional town in the state for both quarterly and annual gains.

New data from the Real Estate Institute of Victoria (REIV) reveals Merbein’s median hit $400,000 in June, with prices up 13.4 per cent for the quarter and a thumping 29 per cent over the past year.

That growth is not just top of the pops in the Sunraysia region, Merbein has blown every other town in country Victoria out of the water.

The tiny town of Merbein has become the hot spot for buying a house in regional Victoria with the median price sitting at $400k, a whopping rise of 29%

So, what’s driving the frenzy? Out-of-town investor demand, says Ray White Mildura director and REIV board member Damian Portaro.

“It absolutely is being driven by investor demand from out of town and interstate. Predominantly Melbourne, but also Sydney,” Mr Portaro said.

Mr Portaro said the flood of buyers’ agents into the region late last year has turbocharged sales, with Merbein’s median price sitting squarely in the buy zone for investors.

Damian Portaro says out of town investor demand is driving the frenzy in Merbein and Sunraysia at large. Picture: Supplied

“Buyers agents entered our market around October, November last year. Anything between $300,000 and $630,000 is absolutely prime market for buyers agents and out of town investors … and (the median price in Merbein) is smack bang in the price range of where investors will buy,” Mr Portaro said.

He said the market’s heat was impossible to ignore, pointing to a recent sale that highlighted just how hot the Merbein market was.

“It was listed for between $424,000 and $466,000. We had our first open inspection on Saturday, second open (inpsection) on Monday and by Tuesday it was sold with 15 offers on it. A buyers’ agent working on behalf of an out-of-town investor purchased for $511,000,” he said.

Real estate veteran Tony Roccisano, director at Professionals Mildura, said the reason is simple and that is Merbein has what buyers want and the price is right. Picture: Facebook

Professionals Mildura director Tony Roccisano said the appeal was simple: affordability, lifestyle, and the Mildura pull.

“Merbein is a beautiful little boutique centre, it’s got a lot to offer, it’s near the river, it’s quite a cute little town and it is only 15 minutes out of Mildura and it is very affordable, much more affordable than some of the bigger centres,” Mr Roccisano said.

He said buyers had been flocking to Merbein as rate cuts and cost-of-living relief make it easier to act.

“Merbein offers a very good alternative, it is very affordable, it is close to Mildura which has all the city facilities and it’s got some nice bakeries, butchers, supermarket, you know it has got everything you need and it is only a short trip away from Mildura,” Mr Roccisano said.

Neighbouring Irymple also rode the boom, with its median up 3.6 per cent to $618,500 for the quarter and 5.7 per cent year-on-year.

Mildura itself posted a 4.8 per cent quarterly increase and 9.9 per cent jump for the year, while Red Cliffs lifted 1.2 per cent for the quarter and 20.8 per cent annually.

Ouyen’s median climbed 12.8 per cent to $265,000 in the last three months.

Houses in Merbein are selling a matter of days as it proves to be a hotspot for potential homeowners and investors. Picture: Generic

Mr Portaro said there may be a little more heat left, but the market was bound to settle eventually.

“I think the rate hold that was announced today might see it continue for another quarter, but eventually we will see a return to normalcy,” he said.

Mr Roccisano agreed saying he expected the Sunraysia region to keep growing while homes remained within reach for buyers.

“I think the growth in the region will continue quite simply because it is still very affordable,” he said.

REIV interim chief executive Jacob Caine said renewed buyer confidence was being driven by improved affordability and easing living costs, but left it to the locals to explain the rush.

With a 29 per cent surge over the past year, Merbein is officially the hottest market in regional Victoria, leaving the rest of the state trailing.