A property data report has revealed a windfall for local homeowners, with the median house price in City of Greater Shepparton increasing by 17.6 per cent in the past five years.
Published online, the Domain figures list the median house price in the March 2020 quarter at $300 000, up from $255 000 for the same period in 2015, offering a significant equity boost for property owners.
The results are no surprise to Kevin Hicks Real Estate auctioneer and director Kevin Hicks, who said there was evidence to suggest prices of residential housing in the local area had risen by 10 per cent in the past two years alone.
“Prior to that the housing market had flatlined for about 10 years,” Mr Hicks said.
The Shepparton-based agent said he did not envisage those gains being eroded any time soon, with the local market unlike the more volatile Melbourne and Sydney property markets.
Mr Hicks said price growth had been driven by an increased demand for housing, fuelled, in part, by the commercial activity in Shepparton.
“The new infrastructure that’s going up, such as the courthouse, the GV Health redevelopment and SAM (Shepparton Art Museum), as well as private investment, is one reason for price growth,” he said.
“Those ongoing civil improvements are creating opportunities for people to migrate to the area to take up very good regional posts.”
Ongoing incentives for first-home buyers have stimulated the new-home building sector, which in turn has contributed to prices of existing homes steadily rising.
“As the cost of building new (houses) increases, it improves the capital improved value of the old,” Mr Hicks said.
“The rental market is also extremely strong, which improves the residential selling market.”
Although the city is experiencing overall growth, there are small pockets that have enjoyed even higher returns.
“Five years ago, you wouldn’t have sold a house on the (Shepparton) golf course above $800 000; in the last six months we’ve sold two for over $1 million,” Mr Hicks said.
“It’s the same in some parts of the rural sector; broadacre cropping land has risen well over 20 per cent in that same period of time.
“Shepparton is a strong regional centre. One thing I always say is that you can never change your location and the geography of Shepparton is perfect, we’re in the middle of everything.
“We’re only one-and-a-half hours from Melbourne and getting closer — we’re right within the corridor of activity.”
City of Greater Shepparton homeowners aren’t the only ones to have experienced substantial improvements to the value of their residential properties. The Domain property data report reveals the following increases in neighbouring local government areas.
Rural City of Benalla
Median house price March 2020: $302 000
March 2015: $240 000
Increase of 25.8 per cent
Shire of Campaspe
Median house price March 2020: $330 000
March 2015: $285 000
Increase of 15.8 per cent
Median house price March 2020: $475 000
March 2015: 325 000
Increase of 45.9 per cent
Median house price March 2020: $331 000
March 2015: 255 000
Increase of 29.8 per cent