Country House Prices Increasing More than City
Recently released RP Data figures showed that in 2012 the property market in country Victoria performed better than Melbourne’s property market.
In fact, the market for residential real estate in Melbourne was the worst performing of all Australian mainland capital cities. Although some gains were made late in the year, house values in Melbourne fell by 2.9% from their levels in 2011 to only $476,500.
This trend was reversed in country Victoria where most regional markets enjoyed healthy gains and price increases unprecedented for their areas.
The RP Data Property Capital Markets Report showed that in 2012 the Wimmera region achieved house price increases of approximately 13.1% to $155,000. In East Gippsland, prices rose by 10.1% to $241,000. Finally the Western District saw gains of 7.5%, increasing the average house value to $261,250.
RP Data research director, Tim Lawless, explained that there was little additional housing added to the country market in comparison to metropolitan areas. Lawless said that the median house prices in country Victoria increased from a low base when compared to Melbourne. The growth seen in Wimmera was exceptional, he added, but is unlikely to continue.