High housing supply is driving price reductions in regional Victoria according to a report by Domain.com.
The report shows that median housing prices across regional Victoria have dropped about 1.4 percent over the past year. Prices in Hepburn shire are down six percent on last year, the 9th largest drop of LGAs in regional Victoria.
Increased taxes on second properties have caused some potential buyers to reconsider and sustained high interest rates have driven some people out of the market.
A property was sold in the Daylesford-Hepburn region (post codes 2460 and 3461 excluding the more remote parts of 3461 like Yandoit and Mt Franklin) every two days in the first four months of the financial year. An analysis of sales data for the area from realestate.com.au showed that 63 sales (49 houses and 14 blocks of land) occurred between July 1 and October 31, 2024.
As reported last week in the Wombat Post, while the supply of properties for sales remains high (approximately 200), the rate of sale over the last 4 months is a clear indication that there is reasonable demand for properties across pricing tiers.
In Daylesford, 25 houses were sold with at prices ranging from $570,000 to $1.6 million and a median price of $818,000 for the 17 sales that reported prices. In Hepburn springs, 12 houses sold at a median price of $705,000 with the lowest selling for $482,000. House sales were also reported in Coomoora, Eganstown and the Glenlyon area including Wheatsheaf and Porcupine Ridge.
| House sales by Agent | |||||
| Township | Belle | McQueen | Jellis Craig | Others | Total |
| Daylesford | 11 | 7 | 4 | 3 | 25 |
| Hepburn | 5 | 3 | 2 | 2 | 12 |
| Glenlyon | 2 | 2 | |||
| Others | 7 | 2 | 1 | 10 | |
| Total | 25 | 12 | 6 | 6 | 49 |
Land sales in the area ranged from $170,000 to $674,000 for the 14 properties sold.
| Land Sales by Agent | |||||
| Belle | McQueen | Jellis Craig | Others | Total | |
| Daylesford | 1 | 1 | 2 | 4 | |
| Hepburn | 1 | 2 | 3 | ||
| Glenlyon | 1 | 2 | 1 | 4 | |
| Others | 1 | 2 | 3 | ||
| Total | 3 | 3 | 5 | 3 | 14 |
A review of the selling prices compared to the advertised pricing guides showed that many properties sold at or below the lower end of the advertised range. This supports the view that sales are being driven by realistic value.
Belle Property accounted for over 50% of house sales across the region. Belle’s managing director, Will Walton praised his sales team and stressed that realistic price expectations were a key to selling in the current market. He also emphasised that increased volume of available properties was driving more competitive pricing.
“There is effectively one buyer for every property on the market, not five like we experienced during COVID”, he said. “Therefore, every property is now competing for buyers to secure a successful sale.”
Mr Walton also emphasised the importance of marketing properties outside of the local area. “Eighty percent of our buyers are from metropolitan Melbourne and interstate and it is important to invest in marketing to attract buyers”, he said.
