The month in review: Regional VIC
By Herron Todd White
Classic styles for the Gippsland region include 1970s to 1980s brick veneer or in older areas of towns, circa 1930s California Bungalows. Miners cottages are very common throughout Morwell, Moe and parts of
Traralgon. These are generic 3-bedroom, 1-bathroom, timber weatherboard dwellings which seem to be popular with investors.
The brick veneer is an iconic family home and is generally structurally sound, built in the good old days with hardwood frames and flooring.
Entry level at the median price of around $270,000 for the regional city of Sale would likely see a 3-bedroom brick veneer in original or dated condition. A renovated California Bungalow in a central location will likely fetch around $500,000. Investors in Morwell can pick up a miner’s cottage in the vicinity of $130,000 and rent for around $210 per week (8% yield).
Many people have observed that our parents reared large families in relatively small houses, while the current generation of parents seek large homes in which to house their two or occasionally three children.
Homeowners in Mildura have traditionally sought detached houses on lots of between 600 and 1,000 square metres. The size of home built since around 1990 has increased considerably, with most new homes containing at least 170 and often over 200 square metres.
In the past ten years we have seen the average size of lots in new subdivisions reduce from around 800 square metres to around 600 square metres. This is attributed to the need for developers to recover the increased cost of servicing lots rather than buyer preference. For investors, the land size is not always a significant issue, as smaller yards mean less maintenance. For owner occupiers however, there could be some buyer resistance to smaller lot sizes in the future, particularly if owners want the ability to put in a swimming pool or build a shed.
With Mildura considered an attractive place for retirees to either stay or relocate to from surrounding rural areas, it is likely that there will continue to be demand for good standard townhouse developments, such as have occurred in the Mildura Golf Course estate and the Mildura Marina. These homes are typically on lots of around 450 square metres and are being pitched at both retirees and young professional couples.