MERBEIN is on its way to being a destination of high demand as property values rise 8.2 per cent over the past three months.
Merbein has led Sunraysia’s quarterly home value climb, recording a massive increase in house prices compared to the region’s other main centres.
John Fumberger, principal and senior sales consultant of Mildura and District Real Estate, which is located in Merbein, said the town had the “best of both worlds”, having a country feel but remaining close to Mildura.
“I think Merbein has been a bit of a surprise package when people have looked around,” he said.
“Out here the house blocks are bigger, more spacious, there are quite a lot of services and resources available in town and it has just got a nice country feel to it in addition to that.”
The majority of Sunraysia towns recorded only minor home value increases over the past three months, with none even close to Merbein’s value leap.
Irymple, which is a popular location for buyers, has remained steady this quarter only increasing 0.1 per cent and Mildura, the heart of Sunraysia, only rose 0.3 per cent.
Red Cliffs, which has seen positive value increases recently, had the second-highest value rise behind Merbein at 1.9 per cent.
Over the river, Buronga’s home values increased by 0.1 per cent and Gol Gol’s by 0.7 per cent.
Mr Fumberger said Merbein’s home values were becoming more in line with Mildura’s.
“Over the last few years the average price of property has gone up approximately $100,000 across the board,” he said.
“It is now pretty well on par with Mildura, which hasn’t always been the case.”
Merbein’s current median house price is $329,089, a value which has been inching closer to Mildura’s median of $396,144.
Merbein’s value has overtaken Red Cliffs, which has a median of $313,402.
Irymple still has the leading property value at $534,963.
Mr Fumberger said Merbein’s continued value growth had been a bit unexpected due to constantly rising interest rates.
After this month’s RBA increase, the cash rate sits at 3.6 per cent, its highest level since May 2012.
“I am surprised (Merbein’s property value increase) has actually kept going while interest rates are under pressure to go up,” he said.
“It indicates that there could still be some more movement there.”
Annually, Buronga and Gol Gol had the largest increase at 6.3 per cent and 7.6 per cent respectively, while Merbein rose 4.7 per cent.
Mildura, Irymple and Red Cliffs recorded minor annual declines in home values, with Irymple down 1.6 per cent, Mildura 0.8 per cent and Red Cliffs 0.4 per cent.
Mr Fumberger said it was hard to say whether Merbein’s values would continue on the same trajectory, but he believed the town’s properties could hold their value.
He said demand for large properties was always strong, and stated subdivisions, including Chaffey Estate right on the edge of town, were “quite successful”.
