AN analysis of Bendigo’s housing market has shown it to be almost four times a better investment than the stock market over the past decade.
The average median house price in Bendigo jumped more than 151 per cent from the end of 2000 to the end of 2010.
The figures come from the State Government, which records the sale price of every property.
Over the same 11-year period, the ASX has increased about 40 per cent.
Leading the way in the median house prices was Junortoun, with the median house price jumping 226 per cent to $422,500.
Bendigo’s inner city was a close second.
In 2000, the median price of a house in Bendigo was $97,000.
In 2010, it was $295,000, a jump of 204 per cent.
All Bendigo suburbs rose by more than 100 per cent over the period.
Third on the list was Long Gully, whose median house price sat at $205,000 in 2010, up from $71,900, an increase of 185 per cent.
PH Property director Brad Hinton said the analysis showed the benefits of a stable market, especially over the past eight or nine years.
“Bendigo was traditionally a very affordable place to live prior to 2001-02 when there was a rapid increase in median price in a very short time,” he said.
“The main reasons for the strong growth were the great rental returns and very low vacancy rates, coupled with the strengthening local economy driven by our attractive location.
“This enticed both investors and families to the region.”
Mr Hinton said such stability will continue, despite Melbourne’s roller coaster market.
“Bendigo is still a great place to invest, vacancy rates are always very low, the returns are always strong,” he said.
“We never seem to have the troughs and the highs of capital cities in terms of price fluctuation.
“Capital growth is always steady, with median prices being helped slightly from new properties being built, which cost above-median price to build.”
DCK Real Estate director Matt Bowles said the evolution was obvious.
“If you sold a three-bedroom, cream brick house in Flora Hill in 2000, you got between $95,000 and $100,000,” he said.
“In 2010, such houses sold for between $280,000 and $300,000.
“In 2000, $100,000 would allow you to buy a new 12-square, three-bedroom, one-bathroom new home on an estate.
“Today you would get a very basic house and land package for $200,000.”
Median house prices 2000 - 2010
Suburb 2000 2010 Change %
Ascot $155,000 $328,000 112
Bendigo $97,000 $295,000 204
California Gully $86,300 $210,000 143
Eaglehawk $85,000 $222,500 162
East Bendigo $109,200 $245,000 124
Epsom $107,000 $275,000 157
Flora Hill $99,500 $266,000 167
Junortoun $129,500 $422,500 226
Kangaroo Flat $112,500 $249,000 121
Kennington $110,000 $290,000 164
Long Gully $71,900 $205,000 185
Maiden Gully $147,800 $385,000 161
Marong $113,200 $297,500 163
North Bendigo $87,500 $220,000 151
Quarry Hill $114,000 $291,000 155
Sailors Gully $91,000 $207,000 127
Spring Gully $142,000 $291,500 105
Strathdale $156,300 $330,000 111
Strathfieldsaye $157,000 $355,500 126
White Hills $94,000 $250,500 166
Source: DSE A Guide to Property Values 2010
It can't be because it relies on data of house sales collected over the entire year, including all of December. It is not the REIV data, which isn't that credible for places like Bendigo because about one and a half agents in town submit their data all the
time. This data is State Government data from actual house sales, used for things like sales tax, therefore it is up to date. The other reason I know it is not year-old data is because it gives a preliminary 2011 figure for all suburbs, based on sales to date.
Then again, they could be medium house prices, given by someone who can see the future!! Apologies for missing out Golden Square. For the record, Golden Square's median house price jumped 163 per cent from 2000 to 2001, from $100,000 in 2000 to $263,000.