Mildura’s property hit likely to be temporary, says expert

THE coronavirus downturn could continue to have an impact on Mildura’s real estate market over the next few months, but it may prove to only be a “pause button”.

Propertyology head of research Simon Pressley said some favourable conditions still applied to the Sunraysia housing market, after price growth in the low-20 per cent range over the past three years.

Mr Pressley said Hobart was the only capital city to experience such growth in that time, meaning Mildura entered the crisis with good momentum.

With the agriculture sector still looking solid, helped by recent rain, and tight pressure on a rental market with low vacancy rates, there was reason to believe any interruption would be temporary.

“Mildura has had a very small housing supply pipeline for several years,” he said.

“The number of new dwellings built by your local construction sector has clearly been less than what demand has required for a few years.

“That’s why you’ve had pressure on rents and that’s why you’ve had pressure on property prices.

“Now, coronavirus has no impact on supply … (the virus) doesn’t build a house or squash a house — what’s there is there, that hasn’t changed, Mildura still has a tight housing supply.”

Mr Pressley said Propertyology, which advocates regional property, had “a contrarian view to a lot of property commentators” during the current crisis.

He said interest rates remaining at an all-time low would also help the real estate market.

“There’s always going to be casualties when there’s something like this but, generally speaking, the property market –it’s as if the pause button has been pressed,” Mr Pressley said.

“Now, my view will change on that if everyone’s cooped up in our cocoons and not allowed to leave home into the new year (but) there’s no suggestion with the commentary from federal and state leaders over the last couple of weeks that that’s going to happen.”

Mildura had a median house price of $318,000 in the 12 months up to the end of March, according to the Real Estate Institute of Victoria.

That figure was up from $313,000 three months earlier, a 0.8 per cent rise.