Regional VIC

The Smartline Report – April Edition

The month in review: Regional VIC

By Herron Todd White
April 2015

Mildura

There is an adequate supply of suitably zoned land suited to residential subdivision in Mildura, with most of this land located towards the western extremity of the town. After a period of significant developer activity up to around 2011, there has been relatively little activity in recent years, with developers affected by both the GFC and rising costs.

This reduced activity had the affect of reducing supply, and as a result, the average lot price in Mildura over the past two years has risen from $112 to $130 per square metre and the average lot size has reduced from 796 square metres to 735 square metres. Standard lots of 700 square metres are selling for around $95,000. Higher prices are obtained for lots in courts than those situated on feeder or arterial roads.

These appear to be selling quickly and it is considered that demand will exceed supply in the short term.

At the other end of the scale there is the opportunity to live on a lot of around 4,000 square metre, with a number of these low density estates located in the Nichols Point and Merbein areas. There has been good demand for the lots in Nichols Point, with prices of up to $155,000 obtained.

There is limited scope for in fill development in Mildura, however one example of a higher density development has involved the subdivision of part of the Mildura golf course into small lots aimed at retirees. This staged subdivision has had strong demand, with prices of around $140,000 obtained for the early lots typically of 400 square metres and prices of over $200,000 now being sought for a later stage containing larger lots.

Echuca

New estates in Echuca are largely limited to west of the township with the final release of Westwood Park Estate and newly completed development of Park View Estate. While there are some limited infill opportunities, these comprise the main area of opportunity for buyers looking to secure smaller scale residential lots. There are a number of larger residential developments including off Wharparilla Drive and further to the east. Typical prices for smaller residential lots are in the order of $135,000 plus, while larger lots can fetch as much as $300,000 depending on location, size and aspect.

In Moama buyers are likely to be spoilt for choice with a number of developments under way including stage 2 of Winbi Estate and the newly completed Murray Bank development. This is likely to be complemented by additional supply of higher density developments off Nicholas Drive and to the eastern fringe of the Lakeview development. Prices typically start at $140,000 for smaller lots through to $200,000 for half acre allotments.

Warrnambool

Warrnambool’s vacant land market at present is suffering from oversupply, with multiple residential estates under construction or not yet fully filled. These include the Hollingsworth Estate, South Dennington, Russell Creek Estate, Grange Estate, Toohey Estate, Riverside at Wollaston and Hopkins Ridge Estate, some of which are still in stage 1 or 2 of multi stage developments. Land values range from $125,000 up to $355,000 in these estates, a softening from what we saw 12 to 24 months ago. Approximately 70 hectares of prime river frontage land has just been rezoned General Residential and is currently on the market. In time this will be developed and will continue this trend. This oversupply is not only keeping the vacant land values down in these estates but is creating lower underlying land values in residential estates developed in the 1980s and 1990s.

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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. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325

 

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