COMMERCIAL and blue-chip residential property sales are leading a resurgence in Sunraysia’s real estate market as it emerges from a post-pandemic hangover.
Leading national property analyst CoreLogic’s latest data shows the “Mildura-Buronga” market weakened significantly in 2023, with a 15.5 per cent dip in sales and the average time on market for a dwelling blowing out from 21 to 29 days.
In better news, house values increased by 2.3 per cent in the quarter to January 2024 – a whopping 33.6 per cent jump over the past five years, led by a regional property boom between 2020-22.
The average house price in the Mildura-Buronga region is now $410,632, while the average rent is $425 a week, up 5.1 per cent over the past year and 26.7 per cent more than in 2018.
Real estate agents across Sunraysia this week reported that confidence levels were returning to the local market amid a steadying of interest rates and the inflation rate falling last month.
Tierney Real Estate director Ryan Tierney said the commercial property market was “moving along very nicely”.
“January, historically, is one of our poorest performing months. But we had a record January, and February was strong, and we’re on track for a record March as far as sales go,” Mr Tierney said.
“We do a lot of business in the commercial area, and there’s definitely an appetite for commercial property here.
“As an example, we recently had 106-108 Pine Avenue on the market. That was a large-scale commercial freehold and people would know it previously as Hodgo’s Bikes, and we’ve just sold that.
“It was listed between $1.6 million and $1.7 million and we got the bottom of the range. It was only on the market for just under three weeks.”
Collie & Tierney First National director Ben Ridley said the Sunraysia property market was among a number of sectors to suffer in late 2023 when “people were genuinely puffed out” after a year of cost-of-living pressures.
“Retail and hospitality took a hit, too. But now, with inflation numbers coming down quite significantly and interest rates either likely to hold or potentially drop later in the year, we’re seeing confidence return to the property market here,” Mr Ridley said.
“February was an incredibly busy month for us. We’re now getting a steady flow of stock into the market and of sales coming out. So, there is now greater parity with supply and demand compared to last year.”
Both Mr Ridley and Ray White managing director Damian Portaro say the higher end of the region’s property market is “red hot”.
However, it is for this reason, Mr Portaro says, that the overall property data “is a bit skewed”.
“It makes it look like things are flying but it’s not quite the case yet. It’s definitely not a disaster with what’s happening here, though,” he said.
“It’s unusual, but the blue-chip market – you know, the $1 million-plus properties – is by far the best.
“The $600,000 to $800,000 range is struggling, but $400,000 to $600,000 is OK. The sub-$300k is pretty woeful because the investor market and government policy are definitely affecting the (real estate) landscape in Victoria.
“But what’s selling well is lifestyle properties. Anything that’s an acre or half an acre. It could be in Mildura or Irymple, but if it’s quality, it’s selling.”
In explaining how “the data doesn’t tell the full story”, he said land sales in the Mildura area have been “near non-existent” over the past year because “we have too much available land”.
“Mildura has 333 blocks of land currently advertised for sale,” Mr Portaro said.
“For context, Albury is 40-50 per cent bigger than Mildura, and they’ve got 62 blocks of land for sale.
“It’s a demand issue for us, that’s all it is. It’s a post-COVID pandemic hangover.
“I’ve just come back from Melbourne and every other (Ray White) agent, whether it was regional or metro, said they’re back to normal. But we’re not at normal numbers yet for Mildura.
“We’re the last cab off the rank around the state, but at least we’re about to leave. Once we get some more positive economic news, we’ll bounce back even quicker.”
See also: Commercial sector back in business
