Central Victoria Region: Stable Rental Market with Growing Investor Interest
The Ballarat rental market has remained stable, providing security for both renters and investors. With demand staying strong and new investors entering the market, this region offers opportunities for long-term growth.
The rental market in the Ballarat region has stabilised, offering consistency for renters and investors alike. As of July 2024, the vacancy rate in Ballarat was 1.7 percent, according to the Real Estate Institute of Victoria. Rental prices, which peaked a few months ago, have now levelled off, with the median rent for houses sitting at $420 per week.
Demand remains strong, with an average of six groups attending property inspections. While the number of applications per property has slightly decreased, properties are still leasing relatively quickly, often within a day to two weeks. In some cases, homes are snapped up by tenants registered on the database before they are even listed publicly.
From a renter’s perspective, the market in Ballarat is a positive one, with a diverse range of properties available at relatively affordable prices. The area attracts a broad demographic, including younger people, families, and older retirees. Many tenants are either locals or individuals moving from larger cities seeking more affordable housing and a better lifestyle in regional Victoria.
The region offers a variety of rental properties, from one-bedroom units to larger acreage homes. There is particularly high demand for three-bedroom houses in close proximity to schools, shops, transport, and amenities, making them popular with families. Ballarat Central continues to be a sought-after location, as do the newer residential estates of Winter Valley, Bonshaw, and Lucas, which offer larger family homes in high-growth areas.
New Investors Enter the Market
Although investment activity has slowed, there are signs of new investors entering the Ballarat market, particularly from interstate and Melbourne. These investors are drawn by the region’s affordability, strong rental demand, quick property leasing times, favourable rental returns, and ongoing infrastructure development.
In Ballarat Central, median property prices over the past year ranged from $585,000 for houses to $350,000 for units, according to realestate.com.au. In July, 43 properties were available for rent in Ballarat Central, with houses leasing for $420 per week, offering an annual rental yield of 3.6 percent. Units were renting for $350 per week, with a rental yield of 4.4 percent.
As interest rates decrease over the next six to 12 months, more investors are expected to return to the market, further enhancing the growth potential of the Ballarat region.