Regional Victoria median house price $310,000 in September quarter

BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.

The State Government has announced a grant of $50,000 to carry out the review.

The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.

Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.

“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.

“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”

Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.

“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,

“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.

“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”

Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.

“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.

“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”

Bendigo Weekly | Bendigo Weekly | 23-Oct-2011 2.51pm

The REIV’s September quarter market update shows that the median house price in regional Victoria has dropped to $310,000 from $320,000 in the June quarter. The 3.1 per cent drop is very similar to the 2.8 per cent fall recorded in the metropolitan area.

It is clear that concerns about the international economy and negative consumer sentiment have translated into reduced demand and a lower median. This serves as another reminder that the state of the housing market is directly linked to the health of the economy. Despite evidence that the local economy continues to outperform many of our trading partners, we are now experiencing a soft housing market.

Of the main regional centres, Geelong has recorded a very healthy increase of 5.7 per cent to a median house price of $390,000. In Ballarat prices were stable, with a median of $285,000, and in Bendigo there was a 2.6 per cent reduction to $277,500.

A look at the smaller regional centres shows that median prices increased in the Shire of Mount Alexander, the Surf Coast Shire, the City of LaTrobe and, to a minor degree, Wodonga. Falls were recorded in Shepparton, the Hepburn Shire and the Shire of Macedon Ranges.

The lesson from the GFC, when the median fell by 14 per cent, is that the market will remain subdued until confidence in the economy improves or there is stimulus in the form of lower interest rates.

Enzo Raimondo

CEO REIV