Regional Real Estate


  Regional & Rural Property Market Report, June 2018

What’s hot & what’s not!

HOT – Rural Farming Sector (greater than 40ha)

Victoria’s ‘Great South Coast’ region from Camperdown through to Portland and as far north as the Southern Grampians is experiencing a spike rural sales numbers and transaction value.

After a flat 2017 period the Great South Coast now leads the way across regional and rural Victoria recording 99 settled property transactions greater than 40 hectares across the summer quarter to 28 February 2018.

Download a copy of the transaction numbers for summer by >> clicking here.

According to data obtained through Property Data Solutions, the average transaction value for the Great South Coast region was also up by approximately 6% to just over $1.1 million. All other regions across Victoria experienced a decline in their average transaction value.

Factors influencing the rebound include:

  • The Great South West is traditional dairy country – a forecast rebound in milk prices is encouraging new investment.
  • Reliable rainfall – dry conditions in Australia’s north is generating northern states enquiry which in turn is creating buyer competition.
  • Good value – value per acre within the region declined over recent years and with the influences nominated above it’s now regarded as ‘good value’ buying.

COLD – Rural Farming Sector (greater than 40ha)

After a buoyant 2017 which saw the ‘Mallee’ region in Victoria’s north west achieve an average transaction value increase of 31% to $810,333, the average transaction value for properties greater than 40 hectares fell to $549,629 across the summer quarter to 28 February 2018.

Factors influencing the decline include:

  • Summer harvest – traditionally a busy period for broad-acre growers focusing on harvest rather than property transactions.
  • Lack of available stock – after a buoyant 2017 period growers happy to hold property rather than sell.

HOT – Lifestyle Sector (4-40ha)

The ‘Gippsland’ region in Victoria’s south east recorded the most lifestyle sector transactions of between 4 to 40 hectares for the State. Between 1 December 2017 and 28 February 2018 Gippsland recorded 62 lifestyle property transactions totalling just over $43 million at an average of $649,256 per transaction.

The State’s most expensive region for lifestyle property remains ‘Barwon’ which recorded 23 transactions at an average of $1,369,402 per transaction.

Factors influencing transaction volume and price paid include:

  • Proximity to Melbourne – Gippsland (South Gippsland) and Barwon (Geelong and the Bellarine Peninsula) are relatively close to Melbourne and generally accessible by modern dual lane freeways and in the case of the Bellarine Peninsula, modern passenger ferry from Melbourne’s Docklands.
  • Coastal position – Australian’s love the beach!
  • Good amenity – Well served with schools, hospitals and shopping precincts.

HOT – Residential Sector (0-4ha)

In a replication of the lifestyle sector result, ‘Gippsland’ (south east of Melbourne) and ‘Barwon’ (south west of Melbourne) were the standout Victorian regions for residential transaction numbers and sales value.

On the back of strong residential transaction numbers throughout 2017, Gippsland led the way with 2,984 reported residential settlements between 1 December 2017 and 28 February 2018. Barwon was next best with 2,527 reported residential settlements.

The average value of a residential settlements across all of Gippsland was $365,423, up 18% on the 12 month period to 30 November 2017. The average value of a residential settlement across all of Barwon was $601,247, up 22% on the 12 month period to 30 November 2017.

On a micro-level, the regional centres of Inverloch and Wonthaggi accounted for close to 50% of South Gippsland’s residential settlements across Summer.

Factors influencing transaction volume and price paid include:

  • Lack of stock – The demand from Melbourne buyers is outstripping supply.
  • Proximity to Melbourne – Gippsland (South Gippsland) and Barwon (Geelong and the Bellarine Peninsula) are relatively close to Melbourne and generally accessible by modern dual lane freeways and in the case of the Bellarine Peninsula, modern passenger ferry from Melbourne’s Docklands.
  • Coastal position – Australian’s love the beach!
  • Good amenity – Well served with schools, hospitals and shopping precincts.

For further information or questions please contact me anytime.

Best wishes,

Jason Hellyer
Ray White Rural (Victoria)
Mobile: +61 403 043 571
Email: jhellyer@raywhite.com


* Data Source – Property Data Solutions Pty. Ltd. 2017. Data collected 14/06/2018 for period 1 Dec 2017 to 28 Feb 2018. Ray White Rural (Victoria) does not warrant the accuracy or completeness of the information contained in this report and any person using or relying upon such information does so on the basis that Ray White Rural (Victoria) accepts no responsibility or liability whatsoever for any errors, faults, defects or omissions in the information supplied.