The Greater Bendigo real estate market in 2024 has been shaped by a mix of low residential construction activity and steady housing demand. While the challenges are evident, there are also opportunities for buyers, investors, and renters.

Rob Ketterer, Business Development Manager at McKean McGregor, shares his insights into the trends which have shaped the market and tips on what to look out for heading into 2025.

Established Housing: A Value Proposition

In 2024, existing homes have continued to attract buyers, offering a more affordable alternative to new builds. Escalating construction costs have deterred many from pursuing new homes, keeping sales of established properties relatively strong. Competition for established properties, meanwhile, is expected to intensify as reduced interest rates boost buyer confidence, enhance affordability, and increase borrowing capacity. This dynamic may render the current value proposition of existing homes short-lived, further underlining the importance of acting decisively in the market.

Investment Properties: Why Landlords Are Selling

Recent changes in compliance laws, minimum standards, and land tax have created a challenging environment for rental providers. While these factors may discourage new entrants into the investment market, the long-term wealth-building potential of property investment—a principle historically proven and unlikely to change.

A key trend in 2024 has been the increasing number of landlords choosing to sell. Many are approaching retirement and opting to release equity built over decades. This capital is being redirected into superannuation, retirement plans, or assisting younger family members entering the property market, colloquially known as the "Bank of Mum and Dad."

This is not a new phenomenon but a strategic shift seen among seasoned investors seeking to simplify future income streams and estate planning.

Opportunities for Savvy Investors

While many landlords are exiting the market, industry experts suggest it’s an opportune time to consider investing. Bendigo’s historically low vacancy rates—combined with predictions of a population surge to 155,596 by 2036—indicate a strong future demand for rental properties. As the supply of rental properties dwindles, opportunities for consistent returns remain robust.

The Rise of Rentvesting

"Rentvesting" has gained traction as a creative strategy to enter the market. This approach involves purchasing an affordable property in one location while continuing to rent elsewhere due to lifestyle or work commitments.

For example, professionals with Bendigo ties working in Melbourne often choose to rent in the city while investing in Bendigo. Similarly, young buyers, with some parental assistance, are acquiring properties and renting them out while living at home.

Rentvesting offers a practical pathway for those seeking to gain a foothold in the market without compromising on their immediate lifestyle. Employing a professional property manager can further ease the challenges of being a landlord, allowing investors to focus on long-term goals.

Land Banking

Titled land stock has reduced to very low levels in comparison to the start of 2024. Buyer demand for titled land increased particularly prior to June in an attempt to avoid the additional costs associated with the new 7-star rating regulations that have now come into effect.

Pre-sales for land in new stages have remained very low, with little or no construction of new stages in the back end of 2024 resulting in a long lead time of at least mid-2025 for new titled land stock. As buyer interest returns there will be little to choose from, particularly when taking into account builders' time limits on providing fixed-price contracts for construction of new homes.

It may be worth considering securing your land now a building later when you have the time to properly consider your home design, finishes and your preferred builder.

Looking Ahead

Despite the challenges of 2024, Bendigo’s property market remains resilient. Whether buying, selling, or investing, understanding market dynamics and acting with informed confidence is key to navigating this ever-evolving landscape.

With expert guidance and a long-term vision, the Greater Bendigo market continues to offer opportunities for growth and stability.