The month in review: Regional Vic

By Herron Todd White
October, 2009

MILDURA

Mildura’s residential activity continues to be centred on the under $250,000 price bracket with slow demand in the middle and upper price ranges. The lower end market continues to see buoyant sales activity.

Perhaps it is the fears of climate change, drought, the negative media coverage of the water crisis to the Murray and Darling Rivers, the struggling horticultural industries (particularly the winegrape industry) but there has been only limited activity in the over $700,000 price range and the region needs some good news to build confidence into the market.

An example of the slow demand in the upper market was the eventual sale at $750,000 of a spacious 6 year old quality residence at 5 Riverview Way, Mildura after it had initially been marketed for $1,350,000 (excessive) in 2007. The writer suggests (tongue in cheek), that the soft price was due to the house being Queenslander style and the Mexican market has an aversion to northerner influence!

The sleeping giant in the region is the Dockside Mildura Marina project which commenced construction in 2005 and which is now seeing some quality housing being built. A new residential complex of 12 prestige 3-storey apartments overlooking the Murray River is about to be constructed and will likely be marketed at around $1.1M. Of very good speculative value is the marketing of 19 townhouse sites fronting Bridge Way overlooking the Marina at $300,000 each. There is a covenant requiring any construction to be of a 2-storey design, (3 marine
styles) with a gross building area of around 240m2.

The first three townhouses to this stage are about to be constructed and once activity picks up there are promising signs of growth. Houseboat Marina sites are available at $135,000. The townhouse sites are likely to be the cheapest Marina waterfront serviced sites in the land. The Marina is at ‘pool level’ to the Mildura Weir and the development is to include restaurants, a 169 room 4-starplus 3-storey hotel/convention centre, a retail precinct, 72 residential sites, 2 apartment complexes and over 60 houseboat sites. Further information can be sourced via: www. milduramarina.com

The Town of Red Cliffs (population 2,900) is 17 kms south of Mildura and is close to two proposed sites for huge solar farms, potentially costing over $1billion. If these proposals proceed, the construction workforce will be large and demand for rental accommodation will increase returns on investment properties. The residential market at Red Cliffs has yet to go ‘through the roof’ and there are houses available for sale at between $100,000 and $250,000. Red Cliffs may become the solar capital, but whilst there has been extensive government grants made for solar development available, the recent placing of the initial solar company (Solar Systems) into liquidation has been a setback.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2008 Smartline Home Loans P/L. ABN 38 085 370 270