Regional & Rural Property Market Report, January 2018
Sales down but values up!
2017 was a flat period for regional and rural property transactions
across Victoria. 57,277* transactions were reported in the 12 month
period between December 2016 and November 2017, -1.1%* YOY down for the same period a year earlier.
Conversely Victoria did see a 5.4%* rise in the combined value of regional and rural transactions, amassing more than $22 billion* in sales, up nearly $1.2 billion* on the corresponding 12 month period. Growth in values was largely attributed to the residential sector.
Overall the value of Victoria’s regional and rural residential sector rose by 7%* to just above $19 billion*. Gippsland was the best performing residential region with sales up 6.9%* and total value up 11.1%*.
Victoria’s Rural-Lifestyle market (4-40ha) experienced a -23.6%* decline in sales. Regions closer to Melbourne faired best, with the Central Highlands district (west of Melbourne), the state’s worst performing region.
Victoria’s Rural-Farming sector (40ha+) recorded 2,549* sales, down -18.3%* on the previous year. In total more than $2.350 billion* in Rural-Farming transactions took place across Victoria last year. Broad acre cropping country in the Mallee recorded the greatest increase in total sales value, up 23.3%* on the previous year.
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City buyers developing an appetite for Regional Victoria
Demand for regional Victorian property seems to be partially fuelled by an emerging trend of city buyers and investors searching for value and lifestyle change.
When you compare Melbourne’s median house value of $650,000* against an average sales value across regional Victoria of $314,260*, at less than half the cost it makes good sense to look at regional Victoria for better value!
Better concessions for regional ‘First Home Buyers’
The Victorian Government is also doing its part to stimulate growth and prosperity across regional Victoria through extra funding for First Home Buyers.
From July 1, the new Victorian First Home Owner Grant will double to $20,000 for new homes in regional Victoria valued up to $750,000 and stamp duty will be abolished for first homes under $600,000.
Further detail on First Home Buyer concessions and qualification can be found by visiting the Victorian Government’s Regional Living website.
‘Young Farmers’ get a leg up too!
Young Farmers are also given access to Victorian stamp duty concessions not too dissimilar to the First Home Buyers scheme.
As a young farmer buying your first farmland property in Victoria, you may be entitled to a duty exemption or concession if you satisfy certain eligibility criteria. The available exemptions and concession apply to contracts for single parcels of farmland valued at $750,000 or less, entered into on or after 1 July 2011.
Further detail on Young Farmer concessions and qualification can be found by visiting the Victorian State Revenue Office website.
Ray White Rural (Victoria)
Mobile: +61 403 043 571