Values are surging in Benalla’s real estate market with latest figures showing prices have leapt 8.4 per cent in the March quarter.
That compares with the regional Victorian average of 1.8 per cent for the same period.
At $257000 the median house price in Benalla is still much more affordable than the regional average of $404000 and when it comes to the rental market we are more affordable than most Victorian towns.
The Real Estate Institute of Victoria figures show the state average for regional weekly house rentals is $315 — here it is only $258.
The rental yield in Benalla is also very strong at six per cent for houses and 5.2 per cent for units, compared to the regional average of 4.1 and 4.4 per cent respectively.
REIV chief executive Gil King said with the supply of homes coming on to the market still tight, home seekers committed to purchasing in a particular area should be ready to seize the right opportunity.
‘‘With the vast majority of properties still sold privately, being ready to act quickly will increase chances of a successful purchase,’’ Mr King said.
‘‘There were 150 locations in regional Victoria where private sales numbered 20 or more in the 12 months ended April 30.
‘‘Over the past year, the median days on market have been slashed for properties in many locations across the state.’’
Benalla Residential Rural Real Estate’s David MacKinnon said in the past 12 months the local property market had seen good gains and heaps of activity from first-time buyers.
‘‘Buyer activity has seen prices rise, and there are investors entering the market based on the new businesses that are being established,’’ Mr MacKinnon said.
‘‘We’ve got the John Holland concrete factory, and the aged-care facility in Thomas St being built.
‘‘And those that are here already are at full production, the likes of Schneider Electric, D&R Henderson and Thales.
‘‘There’s going to be so many jobs available in Benalla, the pull in Benalla isn’t going to be nearly enough to keep those businesses operating.’’
Bruce Biggs from Landmark agreed saying that when the jobs hit there would be huge demand for properties both to purchase and to rent.
‘‘We don’t do rentals here, but I do know that once the jobs are created there’s going to be a major issue, there’s under-supply right through this region,’’ Mr Biggs said.
‘‘I tell my buyers that if they hang back and don’t make a purchase, when the rental needs increase there’s going to be a huge demand for properties and prices will rise further.’’
With house prices having increased steadily for the past 12 months, most in the industry expect the trend to continue.
Mr MacKinnon said the amount of people looking to relocate from metropolitan areas to Benalla had picked up and some Melbourne investors were following suit.
‘‘There’s always been a bit of that particularly with young families sick of the hustle and bustle of Melbourne wanting a better lifestyle,’’ he said.
‘‘Particularly people who have portable jobs like IT, they have been looking at places like Benalla.
‘‘And investors who can’t get a reasonable return in Melbourne have been looking in regional areas over the last year or so.’’
●Take a closer look at the developments in Benalla’s property market by visiting reiv.com.au/market-insights/suburb/benalla