Regional Victorian areas where houses earn more than jobs: Does your home earn more than you?

Properties in sea and tree change destinations including the Surf Coast are dramatically outpacing their residents’ yearly income — with some even making it four times over. See the top performers.

313 Great Ocean Rd, Fairhaven, sold for $2.2m in June. The coastal ‘burb is among the top regional areas where homes are earning more than their owners per year.

Homes in a handful of booming regional Victorian suburbs are earning a whopping four times more than the average income of their residents.

Fast-rising property prices in sea and tree change destinations across the state are dramatically outpacing their owners’ annual earnings, exclusive realestate.com.au research reveals.

House prices across the Surf Coast suburbs of Moggs Creek, Fairhaven, Aireys Inlet, Eastern View and Big Hill all made an average of $255,000 per year from 2018-19 to 2020-21.

The figure is a far cry from the postcode’s average income of just $63,676 before tax, as reported to the Australian Taxation Office for 2018-19.

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Coastal homes along the Great Ocean Road dominated the list.

2/22 Otway St, Lorne, is for sale for $1.05m-$1.1m – and it’s one of the only homes on the market in the tightly held suburb.

Anglesea’s seaside market was not fair behind, as houses racked up an average of $187,500 per year — more than three times the average income of $59,784.

Houses in Lorne, Apollo Bay, Marengo, Cape Otway and Skenes Creek all more than doubled their homeowner’s earnings.

Towns on the other side of Melbourne in the Hepburn Shire and Phillip Island were also among the 45 regional postcodes where homes were generating more wealth than the typical income.

And agents say the pandemic only accelerated buyers’ interest in the regions, with “no reason” to believe price growth would cool off over summer.

REA Group economist Paul Ryan said the areas along the Great Ocean Road, where houses soared above wages the most, were “following the same lifestyle trends the Mornington Peninsula (was) benefiting from”.

“People can envisage living there and commuting back to Melbourne one day a week,” Mr Ryan said.

18 Holmwood Ave, Anglesea, is also on the market with price hopes of $1.85m-$1.95m.

“We’re seeing that across the country — beach areas are going crazy.”

Great Ocean Properties Aireys Inlet director Marty Maher said the coast’s surging prices were a result of Covid-driven demand and a natural lack of stock.

“The towns (on the list) are very small and are surrounded by national parks, so they can’t expand,” Mr Maher said.

“Anglesea only has about 3320 properties and it’s only about 90 minutes from (the city via) the Westgate, so it’s very accessible.”

RT Edgar Bellarine director Brock Grainger agreed there was a “huge supply and demand issue” causing the inflation of house prices.

“A lot of properties are having 20 buyers miss out, and in the end they pay a premium just to secure a property,” Mr Grainger said.

42 Riviera Crescent, Ocean Grove, is listed for $1.5m-$1.65m.

82B High St, Trentham, changed hands for $1.05m in September.

He said the concerning disparity between income and real estate prices meant many first-home buyers would need to “take a step backwards” and settle for a property in the next best suburb in order to get into the market.

“As your income grows, you can always move up into the next area later on,” Mr Grainger added.

“If you’re playing the long game you can’t go wrong buying now. We always get a lot of people saying how they should’ve bought (more) property years ago.”

Realestate.com.au found regional towns in postcode 3458 – which includes Trentham, Trentham East, Blackwood, Lerderderg, Barrys Reef, Fern Hill, Newbury and Little Hampton – recorded gains of $125,000, compared to the area’s average $59,956 income.

46 Ingrow Lane, Daylesford, also sold this year for $1.53m.

McQueen Real Estate’s Kim McQueen said while Daylesford and the surrounds had made “incredible price rises” of about $100,000 per year, it still represented “very good value compared to Melbourne” for those eager to make a lifestyle change.

And it was good news for the region’s homeowners, as many vendors realised they were able to sell up and cash in on their property’s staggering earnings.

“In the last 12 months we’ve sold some properties that have had a 200 per cent increase in two years,” Ms McQueen noted.

“People have been doubling their money. There’s no reason for us to believe that prices are going to reduce. We’ve had a very busy few months, but we are expecting the floodgates to open come November when metro buyers can come down to the regions again.”

20 Tempo Crescent, Bright, is on the market for $1.59m.

Alpine areas such as Mansfield and Mt Buller were generating strong wealth of $80,000 per year, while houses in Bright’s postcode were raking in 1.89 times the average income.

It topped the list for units too, which were making 1.44 time its residents’ income.

Suburbs in Geelong and Ballarat’s Wendouree were also among the four regional postcodes were units outstripped the homeowner’s earnings.

COASTAL VENDORS RIDE THE WAVE

Jessica Robinson and her husband Vaughn with their kids Audrey, 4, Harriet, 3 and Llewyn, 10 months. The family is selling their renovated Ocean Grove home to make the most of the red-hot market. Picture: Alex Coppel

When Jessica and Vaughn Robinson bought their Ocean Grove home for $600,000 in 2015, the plan was to renovate and raise their family at the lakeside residence for the foreseeable future.

But after spending six years transforming the “entire” house and watching local prices skyrocket, the couple were encouraged to list their 42 Riviera Crescent property.

“We’ve seen Ocean Grove grow massively while we’ve been here,” Ms Robinson said.

Houses in the coastal suburb are making an average of $89,500 a year, which was 1.43 times the typical resident’s annual $62,655 income, according to realestate.com.au data.

“With the increasing prices and seeing just how much you can get for a renovated house, it made sense for us to try take advantage (of the market),” Ms Robinson added.

RT Edgar’s Brock Grainger is selling the Robinson’s striking four-bedroom house with price hopes of $1.5m-$1.65m.

The Robinson’s renovated home overlooking Blue Lake is up for grabs.

Inside the four-bedroom pad.

The family had already secured another home in the area, but Ms Robinson was concerned about whether her three young kids would be able to own their own home in two decades time.

“For people with everyday jobs, it is really hard to get into the market,” she said.

“I’m a nurse and my husband is an electrician, so I really feel for people in their 20s who are struggling to get that deposit.”

Their refreshed pad enjoys “beautiful views” of Blue Lake, an alfresco deck overlooking the water, a spacious backyard, and easy access to schools, the town centre and local surf beach.

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