This was published 3 months ago
‘Stunning scenery’: Victorian tree-change towns where house prices doubled
House prices have more than doubled in a string of Victorian regional towns over the past decade, with lifestyle and work-life balance proving the main drivers.
The local government areas that recorded the biggest increases over the 10 years to June were Alpine (up 171.8 per cent), Indigo (140.7 per cent), Murrindindi (128.8 per cent), and Hepburn (134.6 per cent), Domain data shows.
While the pandemic supercharged the movement of Melburnians into the regions, some LGAs have risen outside of this period, and some have recorded larger price increases than others.
A key reason behind this, Domain chief of research and economics Dr Nicola Powell said, is the strong pull of lifestyle locations.
“What you’ve got in those key areas that are seeing strong rates of growth are really those sea-change and tree-change locations with a lifestyle pull that is really attracting buyers to that location,” she said.
Affordability and high demand were also key contributors.
“The affordability aspect has increased demand in some of these locations where people have said, let’s look for a better work-life balance,” Powell said.
“People are still in hybrid ways of working, which in the heart of the pandemic opened up where people could reside, casting the net out to the regions which were more affordable.”
Regional Australia Institute (RAI) CEO Liz Ritchie said that this internal state migration has become a sustained population trend.
Her research shows that in the year to June, a third of all city dwellers who made a tree-change in Australia chose to move to regional Victoria.
Like Powell, Ritchie said that affordability and lifestyle are strong drivers, as well as space and job opportunities.
“There is a strong jobs market, particularly for professional roles, in regional Australia,” she said.
In regional Victoria, Ritchie said that nearly 11,000 jobs were advertised online in August alone and in many regional communities, people could earn a similar, if not larger, median income compared with many capital city suburbs.
“Further, capital city housing prices have reached levels that make them simply unaffordable for so many people. Whilst many regional communities have also seen prices increase, overall, they remain more affordable than Australia’s capitals,” Ritchie said.
Director of First National Real Estate in Bright, Cameron Alexander, said that in the Alpine LGA, most of the movement currently comes from Melbourne, with additional interest from all over the country, including other capitals such as Perth and Sydney.
The attractive lifestyle draws buyers to the area, Alexander said.
“The Alpine LGA is such a popular tourism destination with stunning scenery and fantastic events all year round,” he said.
“Work/life balance is becoming more important than ever, so it’s easy to see why families are wanting to move to the region for the lifestyle on offer.”
While units and holiday investments remain popular, Alexander said more local owner-occupiers are buying homes.
“What we are loving at the moment is the opportunity for locals to purchase their new homes. Post [lockdown] it was really challenging for a lot of local buyers, however with more properties on the market, and prices stabilising it is really pleasing to see properties being sold to owner-occupiers. ”
Principal of Indigo Real Estate Jamie Horne said lifestyle is also a drawcard within the Indigo LGA, which includes Beechworth and Rutherglen.
“The abundance of walking and riding trails, proximity to ski fields, foodie attractions, wineries, a strong sense of community and engagement, broader safety, and family security [are big pulls],” he said.
“Many of our regional buyers and homeowners are able to work from home, with a number successfully maintaining and excelling in their jobs with metro, national and international companies. Many are also moving to be closer to family and friends who may also have relocated,” he said.
While Melburnians represented 70-80 per cent of the buyers in the past two to three years, they are now only about 20-30 per cent, with the majority regionally based.
“The most active buyers are now owner-occupiers with many investors, both residential and commercial, notably being absent, or selling what they may own.”
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.