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New figures show that a rise in the population of Victoria has had a positive effect on regional house prices.
The Real Estate Institute of Victoria reported that figures from the ABS show a Victorian population increase of 144,000 in the last financial year, with regional Victoria accounting for 1.3 per cent of that number.
This percentage increase outstripped regional growth in almost every other state and territory, with only Queensland matching it.
REIV said that in the same period, the median house price in regional Victoria had increased by 6.4 per cent and had grown by 10 per cent over the 2017 calendar year.
Gil King, the CEO of REIV, said that certain regional centres had experienced a population growth and their house prices had also risen.
“Greater Geelong attracted a net 6,195 more residents in 2016/17, with the median house price rising [by] 8.6 per cent. Ballarat’s population surged by 1,921, and the house median rose [by] 5.0 per cent,” Mr King said.
Other centres to experience an increase included Greater Baw Baw, whose population increased by 1,356 and median price went up by 9.0 per cent, and Mitchell, which had 1,163 new residents and a price rise of 8.6 per cent.
In all cases, the median increase measured six months later rose again, even in Greater Bendigo, which had initially dropped by 3.7 per cent during that time.
According to the latest CoreLogic figures, regional Victoria was one of the highest-performing regional areas in the country, with a 5.0 per cent growth in house prices over the year.
Geelong, over the past 12 months, had risen by 11 per cent and Mornington Peninsula had risen by 7.3 per cent in the financial year, according to Corelogic.
REIV stresses that population shift is a factor in changing median house prices, but it is not the only factor behind increasing house prices.
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