Mildura property prices: Real estate market boom continues to start 2021

It’s claimed Melburnians have helped create a “berserk” housing market boom in Mildura as new data reveals property prices across regional Victoria.

One Agency Mildura director Mark Thornton in front of a property sold in Lemon Ave. Picture: Michael DiFabrizio

Despite the coronavirus pandemic, the Mildura housing market is booming — and it’s claimed Melburnians are driving up the property prices.

According to CoreLogic, Mildura house prices had a 12-month increase of 8.9 per cent at the end of February, after hitting double-figure growth a month earlier.

The median price for the area is now $317,346, which has increased from $255,539 in January 2019.

Lifestyle and investment opportunities have been credited as reasons behind buyers’ exodus from Melbourne.

CoreLogic research director Tim Lawless said apart from a relatively stable February, Mildura housing values were tracking at record highs.

He said there was a surge in sales in the second half of last year.

“The market is benefiting from stronger economic conditions as the agricultural sector improves with some rain, but also a demographic tailwind as more Melbournites look towards regional areas for housing,” Mr Lawless said.

Warmer weather is one factor luring buyers to Mildura. Picture: Glenn Milne

Collie & Tierney First National director Ben Ridley said investors were a big factor in Mildura’s growth, attracted by a good return on investment and a tight rental market.

Mildura’s vacancy rate in January was 1.2 per cent, compared to 4.6 per cent for all of Victoria, according to the REIV (Real Estate Institute of Victoria).

One Agency Mildura director Mark Thornton said after a brief halt to activity in the market early last year, confidence returned and quickly sped up.

Mr Thornton said since the new year, the market had gone “absolutely berserk”.

“The last eight weeks feels like a year but it’s only been eight weeks, it’s been incredibly busy,” he said.

Among Melbourne residents seeking a regional move, Mr Thornton said several aspects made Mildura stand out compared with towns closer to the city.

“If you want to chase some warm weather you’re coming to Mildura aren’t you? You’re not going to Ballarat,” he said.

“They might be getting that one-hour train trip from those places, but you can catch a plane from Mildura and you’re an hour away as well.”

Burns & Co agent Ian Miers said there was about a 50-50 split between locals and out-of-towners looking at the Mildura market.

“What happened with Covid, when it first hit, we went quiet for about two to three weeks,” Mr Miers said.

“Ever since then it’s been bloody non-stop – house prices have gone through the roof.

“There’s a shortage of properties coming onto the market, plenty are selling over and above the market price.”

Mildura isn’t the only regional Victoria spot where buyers are cashing in on properties.

According to CoreLogic, prices are up in all 26 regions over the past year.

Regional Victoria’s top markets in the 12 months to February were the Grampians (up 17.5 per cent) and Maryborough-Pyrenees (14.6 per cent), both on low sales volumes.

Bendigo (10.3 per cent) and Ballarat (9.2 per cent) were also riding the trend.