Bendigo, Wodonga and the Northern Grampians named most affordable Victorian regions

A new report has revealed which regional Victorian towns have the best value property on the market.

Bendigo, Wodonga and the Northern Grampians are among Australia’s most affordable regional areas, according to a new property report.

The three areas in regional Victoria made PRD Real Estate Roaring Regions - Top 10 Affordable Regional Areas 2022 list.

The Northern Grampian last year had a median house prices of $287,500, Wodonga’s median price was $450,000, while Bendigo - having Victoria’s third largest economy - had a median of $510,000.

With about $1.1b worth of commercial and housing development underway, and less than 2hrs from Melbourne, Greater Bendigo was one of the most affordable regions on the market, the report found.

The number of dwellings in the region are also increasing at a pace not seen across the rest of the state with 1457 vacant lots, 128 houses, 18 townhouses and 87 units being built this year.

McKeon McGregor Bendigo principal Glenn Rea said Bendigo had recorded a bullish property market in the past two years.

“We have seen price growth of at least 20-25 per cent and we have never recorded that much growth,” he said.

Bendigo’s median price was $510,000 in 2021.

“But despite that Bendigo is still very affordable and is one of the best-priced regions in the state.

“We have all the infrastructure and liveability that you need.”

Mr Rea said much of Bendigo’s land has been snapped up, leaving the property market at a critical point.

“Most of the greenfield development has sold, so there has been a shortage of supply,” he said.

“Land has been hard to attain so some buyers have looked for established homes.

“It is going to be a balance because we need to open up sites and rezone but we can’t have that come at the expense of productive farming land.”

Meanwhile, two hours west of Bendigo, in the Northern Grampians, the PRD report said buyers must act quickly to secure their property at current prices in the region with a lack of residential development likely to increase prices in the future.

The Northern Grampians is home to major parts of the Grampians National Park.

Home to the major townships of Stawell, St Arnaud and Halls Gap and with a population of about 11,000 people, median property prices have surged in the last 10 years.

House prices have increased 74.2 per cent while vacant land has skyrocketed 312.5 per cent.

Rentals are also in short supply in the region, with a vacancy rate of 0.1 per cent at December last year.

To adress these shortages, the council and the Victorian Government is funding $387m worth of development for utilities and essential infrastructure at a greenfield site in Stawell.

A Northern Grampians Shire Council spokesman said the council was focused on unlocking land for more homes to be built in the region.

“One of Northern Grampians Shire’s greatest challenges, when it comes to growing our population and meeting our workforce needs, is housing,” they said.

“Our employers have told us that the greatest challenge to attracting and securing the people they need is associated with housing.”

Regional Victorian property price growth has been strong in the past two years, significantly outperforming the national rate.