COVID-19 set to push Melbourne buyers to regional Victorian property
City dwellers seeing the benefits of working from home and keen to escape the “madness” of Melbourne amid COVID-19 are flocking to regional Victoria — and it could be a smart investment.
Many Melburnians will leave the city behind for regional Victoria during the coronavirus crisis, property experts say.
Prominent real estate agency Ray White has reported a “significant increase” in inquiries about regional properties from city dwellers “seeing the benefits” of working from home due to the COVID-19 lockdown, and keener than ever to escape the “madness” of Melbourne life.
Others are viewing the pandemic-impacted market as offering opportunity to get their feet on the property ladder in affordable areas.
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Markets within commuting distance of Melbourne are expected to hold up well during the pandemic as a result, notably those across Ballarat, Bendigo, Geelong, the Macedon Ranges, Mitchell Shire, Moorabool Shire and the Yarra Ranges.
Ray White Rural Victoria director Jason Hellyer said metropolitan buyers were targeting cities and towns with train links, good amenities, strong NBN or internet connectivity, and affordable housing.
“People are now seeing the benefits of working from home much more in the future,” Mr Hellyer said.
“And some have openly reached their tipping point in Melbourne and want to escape the madness.”
Their gripes included population growth causing increased traffic congestion, major roadworks, late and overcrowded public transport, housing affordability issues, and rises in cost of living, especially for utilities.
He said for the purchasers of a 20ha estate in Clonbinane, 55km north of the city, coronavirus “reaffirmed their decision to move out of Melbourne”.
The couple purchased Warribaa in the vicinity of $900,000, “half the price” they sold their Eltham home for. They faced stiff competition, with the property racking up 42,000 views online.
Metropolitan buyers also recently snared a 4ha Gordon property marketed as an “escape to the country” for $1.3 million, and a 1900-built Kyneton house for about $680,000.
Essendon-based Tara Arnold and Lachlan Stammers had been househunting in Geelong for six months before COVID-19 gave the engaged couple an opportunity to buy in Belmont amid reduced competition.
“We kept going to auctions and they would go for $50,000-$100,000 more than they would be expected to,” Ms Arnold said.
“We put in an offer for our house via email and got it for a smidgen over what it was valued at.
“Our budget in Melbourne would only have gotten us an apartment or unit, and we wanted a backyard.”
Mr Hellyer said buying regional was also a smart investment choice, with the increased activity bound to activate solid price growth.
Hotspotting founder Terry Ryder also expected this to be true of regional areas with economies based around sectors thriving amid coronavirus, including agriculture, viticulture, government and medical hubs.
He highlighted Ballarat and Bendigo as having “well-rounded economies”, with the former soon to be home to a $100 million GovHub precinct and the latter receiving a $630 million hospital upgrade.
“Those markets — and gorgeous towns north of Melbourne like Kyneton, Gisborne and Castlemaine — will probably get through this tough period better than most,” Mr Ryder said.
Virtual inspections are available for Ray White Rural listings.
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Originally published as COVID-19 set to push Melbourne buyers to regional Victorian property