The 10 best suburbs in Regional Vic for first home buyers
Find out which suburbs in Regional Victoria made the top 10 list in Canstar’s Bright Starters Australian First Home Buyer Report powered by Hotspotting.
There are plenty of great locations in Regional Victoria where you can buy a home for less than $402,600. This was the cut-off price we used to come up with our ‘Bright Starter’ suburbs in this region. (For more on why we chose this see our full report.)
Of course, price isn’t the only consideration for first home buyers. A good lifestyle and prospects for growth should also be on the checklist. In Canstar’s inaugural Bright Starters Australian First Home Buyer Report we used five key metrics – sales volumes, price growth, vacancy rates, infrastructure and proximity to work and amenities – to identify suburbs that are desirable and likely to grow in value over time. Check out our list below.
The 10 best suburbs in Regional Victoria for first home buyers
- Bairnsdale
- California Gully
- Churchill
- Long Gully
- Maryborough
- Mildura
- Moe
- Sebastopol (Units)
- Shepparton
- Warrnambool (Units)
Bairnsdale
Buyers out of Melbourne targeting Regional Victoria have been leaders of the affordable lifestyle trend. It started with centres close to the city but has spread more recently, bringing growth to East Gippsland towns such as Bairnsdale. Its popularity is seen in vacancies close to zero and price growth in the latest quarter. But houses are still in the $300,000s. The local economy is strong and diverse, with low unemployment.
California Gully
Regional Victoria has been a leader in sales and price uplift, with the important city of Bendigo prominent. Prices are soaring but suburbs such as California Gully still have houses in the $300,000s, with vacancies low and rents rising also. Bendigo is attracting new residents because its economy is strong, with plenty of new jobs being created. California Gully has lots of local businesses and is 5km from central Bendigo.
Churchill
Homebuyers and investors seeking cheap prices have targeted the towns of Latrobe City, causing 20%-30% leaps in prices but from a low base, so Churchill still has a median house price below $300,000. Federation University’s Gippsland campus is located in the town, and is a major employer with around 400 staff. Other local businesses provide employment. Churchill is also close to major regional towns Traralgon and Morwell.
Long Gully
The median house price for Long Gully has jumped 31% in the past year but houses can still be bought in the $300,000s. This is against the backdrop of Bendigo’s rising economy, with diverse sectors creating employment. Long Gully is just a few kilometres from central Bendigo and also has numerous local businesses providing employment. There’s ample green space, including Long Gully Reserve.
Maryborough
Tree change towns north of Melbourne have been all the rage for the past five years, causing a serious re-rating of local property values. Maryborough is typical of the towns being targeted but it remains affordable despite recent price increases. Its lifestyle appeal includes Maryborough Regional Park and Paddys Ranges State Park. Perhaps its greatest strength is its location halfway between Victoria’s leading regional cities – Ballarat and Bendigo.
Mildura
As a picturesque regional town, Mildura is proving popular with retirees, tree changers and first home buyers. Population growth is prompting significant development with a ‘super suburb’ planned for Mildura South. The strong agricultural and manufacturing sectors mean Mildura has an enviably low unemployment rate. The agriculture sector is attracting international investment, boosted by the completion of several solar energy projects. These are being accompanied by major improvements to freight connectivity.
Moe
This is another of the Latrobe Valley towns – alongside Morwell, Churchill and Traralgon – that has had exceptional price rises recently, with ultra-low vacancies also pushing up residential rentals. Moe still has a median house price below $300,000, so will continue to attract buyers on a budget. Latrobe City is a dynamic economy that is creating jobs, helped by a big infrastructure spend. Its proximity to Melbourne is another drawcard.
Sebastopol (Units)
Five years of price growth has made the key regional city of Ballarat increasingly expensive. Sebastopol, however, is more affordable, with median prices of $405,000 for houses and $305,000 for units. It’s south of central Ballarat, with good local infrastructure including schools, shops, sports facilities and parks. Ballarat is one of Regional Victoria’s most dynamic economies, with big infrastructure projects creating jobs.
Shepparton
This key regional centre offers the affordability that city people are chasing and has jobs generated by the region’s status as one of the nation’s most important food bowls – Goulburn Valley. There’s also a significant infrastructure spend, including on the local road and rail network, with $2 billion being invested which promises to generate economic activity and jobs. Shepparton also sits at the heart of a growing renewable energy zone.
Warrnambool (Units)
Warrnambool was named as the number one region in Australia for liveability in the 2019 IPSOS Life in Australia survey. With a jobless rate below 4%, the region has a $3 billion economy centred around health, education, agriculture, construction, tourism and manufacturing. The sea change appeal, affordability and robust economy have led to rising sales activity and prices. Medians are $480,000 for houses and $365,000 for units.
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The best suburbs in Regional Victoria for first home buyers
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Suburb | Median price | 1-year growth | Median rent | 10% Deposit | |||
---|---|---|---|---|---|---|---|
Initial outlay* | Time to save^ | Monthly repayment+ | |||||
Single income | Dual income | ||||||
Bairnsdale | $340,000 | 19% | $360 | $34,999 | 3 yrs & 11 mths | 1 yr & 11 mths | $1,376 |
California Gully | $375,000 | 26% | $350 | $38,581 | 4 yrs & 3 mths | 2 yrs & 1 mth | $1,518 |
Churchill | $275,000 | 28% | $300 | $28,347 | 3 yrs & 1 mth | 1 yr & 7 mths | $1,109 |
Long Gully | $365,000 | 31% | $360 | $37,557 | 4 yrs & 2 mths | 2 yrs & 1 mth | $1,478 |
Maryborough | $330,000 | 13% | $255 | $33,975 | 3 yrs & 9 mths | 1 yr & 10 mths | $1,330 |
Mildura | $360,000 | 16% | $360 | $37,046 | 4 yrs & 1 mth | 2 yrs | $1,457 |
Moe | $295,000 | 23% | $300 | $30,394 | 3 yrs & 4 mths | 1 yr & 8 mths | $1,189 |
Sebastopol (U) | $305,000 | 25% | $285 | $31,417 | 3 yrs & 6 mths | 1 yr & 9 mths | $1,230 |
Shepparton | $350,000 | 11% | $340 | $36,022 | 4 yrs | 2 yrs | $1,417 |
Warrnambool (U) | $365,000 | 57% | $330 | $37,557 | 4 yrs & 2 mths | 2 yrs & 1 mth | $1,478 |
Sources: Median price, growth and median rent: CoreLogic as at 1 February 2022. Initial outlay, time to save and repayment data: canstar.com.au as at March 2022. (U) stands for units. *Initial outlay includes the deposit, stamp duty, transfer fee and mortgage registration fee. ^Time to save calculations are based on the time required to save up the initial outlay costs with the average income (ABS Personal Income by greater capital city statistical area, adjusted by ABS Wage Price Index, June 2021). Calculations assume that 20% of after-tax income is saved each month, earning a savings rate of 0.62% (average bonus savings rate over the past 12 months to 1/03/22). 2021/22 tax rates plus the 2% Medicare Levy are applied to the annual income and savings interest, and inflation of 2.5%pa is applied to income and property price. Dual income calculations assume there are two savers with the average income. Actual time to save will vary depending on your individual circumstances as well as the rate of property growth. +Repayment calculations assume principal and interest repayments over a 30-year loan term with an interest rate of 3.36% (average owner-occupier variable rate over the 12 months to 1 March 2022). LMI for an owner-occupier first home buyer (per Genworth LMI Premium Calculator) is included in the loan amount for the 10% deposit monthly repayment calculations. For initial outlay, time to save and repayment data based on a 20% deposit download the full Bright Starters report.
Cover image source: Greg Brave/Shutterstock.com
About Terry Ryder
Terry is the founder and Managing Director of hotspotting.com.au, which he created in 2006 to help investors find the best places to buy. Terry has been a specialist researcher and writer on Australian residential property in a career spanning four decades. During that time he has published four books.
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