BALLARAT Regional Victoria
Total Page:16
File Type:pdf, Size:1020Kb
Finding tomorrow’s hot property, TODAY Location Report A joint publication of Reventon and Ryder Property Research BALLARAT Regional Victoria April 2020 For more information contact: Reventon 1300 039 376 Level 9,420 St Kilda Road, Melbourne VIC 3004 [email protected] www.reventon.com.au BALLARAT Regional Victoria Highlights • Regional centre for: manufacturing, • $950 million Stockyard Hill wind farm agriculture, education, tourism, • Major transport upgrades health services, retailing and mining. • $460 million hospital upgrade • Ballarat West Growth Zone • $1.5 billion Rokewood wind farm Suburb - houses Typical prices Ballarat East $360,000 Ballarat North $395,000 Buninyong $500,000 Wendouree $330,000 Ballarat was recently identified as the fastest-growing inland city in Australia by the Australian Bureau of Statistics and, according to some forecasters, can expect more strong price growth through to 2022. Adding to its appeal, Ballarat has also been named as one of Australia’s most liveable regional cities. Proximity to the state capital and housing affordability are the key factors behind Ballarat’s popularity with investors and home-buyers seeking alternatives to Melbourne. First home-buyers in particular are making their presence felt. Ballarat is one of Australia’s strongest regional cities. It thrives through a diverse economy, low unemployment, a growing population and proximity to Melbourne, making it a popular commuter city. With the State and Federal Governments planning to spend billions on upgrading road and rail links to Ballarat, including improved connections to Melbourne airport, commuting will become easier. Several construction projects like GovHub, the hospital expansion, the train precinct and new land estates are drawing in tradesmen who need accommodation, so vacancies are low. Ballarat suburbs have median house prices ranging from around $300,000 to $500,000, emphasising the city’s appeal as an affordable lifestyle alternative to Melbourne - and one where the property market has become increasingly busy. BALLARAT Regional Victoria 2 Economy and Amenities The combination of affordable housing and regular rail links to Melbourne are key factors in the growth of Ballarat’s population. Location A fast train service started in 2006, cutting the journey from Ballarat to Melbourne to about 60 minutes • 110km north-west of Melbourne (faster than driving via the Western Highway). The completion of the Regional Rail Link in 2015 has • Strategic position amid major freight, brought further improvements. tourism and commuter transport Ballarat is seen as an emerging “knowledge” city routes – a regional hub for data processing services and • Four main highways – the Western, research & development. Federation University the Midland, the Glenelg and the Australia (formerly the University of Ballarat) and Sunraysia – connect to Melbourne, the Greenhill Enterprise Centre are both associated Adelaide, Geelong, Bendigo, Mildura with the development of IT. and Portland Health care and social assistance also have a strong • LGA: City of Ballarat bearing on the local economy. Between 2007 and 2014, this sector experienced Ballarat’s largest increase in the number of jobs with 1,844, followed by accommodation and food services (999), education and training (886) and construction (619), according to the City of Ballarat. As at the 2016 Census, the health care sector employed 7,500 and the education sector 5,000. The retail sector also employed 5,000. Industrial estates in Ballarat West, numerous residential land estates, along with several infrastructure developments in the health and retail Population sectors contribute to a healthy construction industry • Population (2016 Census): 101,700 which employs 4,000. • Projected population by 2040: 200,000 - Education and Health • One of Australia’s largest inland Federation University is regional Victoria’s largest cities. institution with three campuses in Ballarat where it Source: ABS and Ballarat City Council has 1,500 staff and 25,000 students. The Ballarat Technology Park employs 1,500 and contributes $100 million to the regional economy each year. Ballarat is western Victoria’s largest provider of health care, delivering services for a region of 250,000 people. As retirees from regional Victoria move to Ballarat for aged health care, the number employed in the Ballarat is the fastest growing health industry is expected to rise to 10,300 by 2031. inland city in Australia; it grew 1.84% in the last year - Manufacturing Australian Bureau of Statistics, September 2019 There are 200 manufacturing businesses in the region, many of which are linked to the agricultural sector. BALLARAT Regional Victoria 3 Employment in manufacturing is generated by a “The relative affordability of Ballarat and Bendigo group of major operators which includes Masterfoods versus Melbourne has made those areas popular Australasia, Haymes Paints, MaxiTRANS (Australia’s with investors,” Wiltshire says. largest supplier of road transport trailers), McCain Properties under $400,000 are attractive to the Foods and Gekko Systems – manufacturers of majority of buyers, whether they’re investors or first- mining equipment. home buyers, according to Ballarat independent real Ballarat manufacturer Alstom builds trains for estate agents Doepel Lilley Taylor. Melbourne’s rail system and regularly manages At least 10 Ballarat suburbs fit this category, contracts worth $100 million. including Wendouree (median house price $330,000) Recent contracts with Gekko Systems and and Ballarat East ($360,000). MaxiTRANS have been be valued at $70 million and Ballarat continues to attract large numbers of $60 million respectively. buyers out of Melbourne, drawn by its affordability - Tourism and better rental yields. Owner-occupier buyers are increasing whereas Tourism is a key industry, the Goldfields being a previously investors were more prevalent, says Mark major drawcard to not only domestic visitors, but Nunn, Buxton Real Estate. “The train line is getting also Chinese tourists tracing their ancestors in the faster, our schools really are elite and we’ve got gold mines. great medical facilities in this town,” he says. Ballarat still has a functional gold mining industry. Alfredton, Sebastapol and Wendouree are the busiest The Ballarat Gold Mine, operated by Castlemaine suburbs, recording over 200 annual sales each. Goldfields, employs around 200. Ballarat also appeals for its growth potential, driven Sovereign Hill, an open-air museum and historical by the strength and diversity of the local economy. park, has regularly received tourism accolades and is in the Tourism Victoria hall of fame for three Some examples of projects driving the economy consecutive wins. are the redevelopment of the train station precinct; the proposed Government Hub in the centre; a Property Profile new shopping centre at Delacombe; the hospital expansion; and several new land estates. Ballarat has established itself as the strongest housing market in the state over the last 18 months, These projects are attracting tradesmen and says the Housing Industry of Australia. workers – all needing accommodation – to Ballarat, thus driving down vacancies. Population growth since 2007 has been twice as fast as the preceding decade, resulting in increases to The increase in demand has been driving up rents. property prices and building approvals, it says. Data from SQM Research shows the median house rent of $350 a week in postcode 3350 is 18% higher In 2020 Ballarat was named by RMIT University as than three years ago. one of Australia’s most liveable regional cities. It was ranked No.1 for access to public transport and Investors can expect a median rent of $310 per week public open space and was in the top five for access in Sebastapol to deliver a return of 5.3%. to supermarkets, local employment and services, The median rent in Canadian is a little higher, $330, and housing affordability. providing a median yield of 4.5%, while rental income This kind of appeal has attracted both investors of $360 a week in Delacombe will yield 4.8%. and home-buyers from Melbourne, which has given major impetus to the Ballarat property market. - First Home Buyers Being within commuting distance of Melbourne In the past 12 months, six suburbs have had annual is another of Ballarat’s lures, especially for first growth in their median prices of 10% or more – -home buyers who do not have to pay stamp duty on Ballarat Central (19%), Black Hill (18%), Ballarat (13%), Alfredton (11%), Delacombe and Mt Pleasant properties priced below $600,000. (both 10%). Other suburbs have grown 7-9%. In FY2019, building approvals across the Ballarat Domain economist Trent Wiltshire says Ballarat and LGA were the highest for over a decade, shows data Bendigo have had price growth almost as fast as from the ABS. Around 1,200 houses were approved Melbourne’s over the past decade. compared to an average of 980 for the past five years. BALLARAT Regional Victoria 4 Of these, 750 homes were bought by FHBs between Phil White, CEO of QBE Lenders’ Mortgage Insurance, January and November. These were largely says: “Demand is likely to continue to come from concentrated around postcode 3350, taking in most first-home buyers from Melbourne taking advantage of central Ballarat, Lucas and Alfredton, where 437 of the stamp duty concessions on offer. The local sales and new buildings were recorded. economy is also reasonably strong and tight vacancy Postcode 3358, which encompasses the rapidly rates are likely to support investor demand”. developing Winter Valley, saw 124 FHBs move in. - Vacancy Rates The surge in interest in the Ballarat market has With a shortage of supply and growing demand of boosted the long-term capital growth averages. accommodation for workers coming to town to work Over the last decade both Soldiers Hill and Black on infrastructure projects, Ballarat has one of the Hill have each averaged 8% per year while Ballarat, lowest regional vacancy rates in Victoria. Ballarat Central, Bunninyong and Golden Point have Vacancies have been below 3% for the last five all averaged 7% per year.