Property sales in the Latrobe Valley jumped 18 per cent in the first five months of 2018, a report by the Real Estate Institute of Victoria has revealed.
The Latrobe Valley recorded the highest jump in residential sales compared to any other region in Victoria – recording an extra 146 sales compared to the first half of last year. Statistics revealed property sales in regional Victoria fell for the first five months, down by 26 per cent, compared to the same period in 2017.
Sales at Greater Geelong slid almost 37 per cent – down 1423 sales on the previous year, while Mitchell Shire Council in the state’s north recorded a 50 per cent drop in sales.
More than 940 properties have already been sold in the Latrobe Valley this year, as the REIV said local government areas including Swan Hill, Alpine and Central Goldfields all recorded drops in sales of 40 per cent or more.
Keith Williams Real Estate Traralgon business development manager Kerrie Ford said market confidence was high.
“The market has changed from a buyer’s market to a seller’s market in the last five to six months,” Ms Ford said.
“We’re now experiencing several buyers on the same property which we have not had for a long time in the market place here in the Latrobe Valley.
“We had a glut of properties come onto the market when Hazelwood [Power Station] closed. We’ve cleared those properties and now we’re experiencing a shortage of properties to sell.”
Ms Ford described the jump as a sign of “buyer demand” and said some properties were selling in excess of the asking prices.
“Some of our homes now are also selling before they’re even being listed on the internet,” Ms Ford said.
“When I question a lot of my clients they say they have chosen the Latrobe Valley because of the proximity to Melbourne, Gippsland Lakes and the coast.
“They’re selling their homes and achieving a high price and buying here at a much lower price and yet in a lot of instances getting a much better quality property than what they’ve sold.”
Stockdale and Leggo Morwell and Traralgon managing director Jim Demetrios said incentives from government, good infrastructure and business investment had contributed to the jump in sales.
“Things like the new GovHub to be constructed in Morwell and new businesses looking at decentralising into the Valley have created a new level of confidence and inquiry,” Mr Demetrios said.
“The difference we’ve seen in the market this year are the enquires from people in the eastern suburbs of Melbourne who are moving to the Valley. It’s not just investors, a majority are owner occupiers.”
Real Estate Institute of Victoria chief executive Gil King said the dip in sales across the state was likely a result of fewer homes on the market.
“Regional Victoria experienced its strongest property market in recent years in 2017. Given that 2017 was a bumper year, it is not unusual that sales this year are down,” Mr King said.
