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Victorian peri-urban areas leading the housing market!

The title of a news article yesterday was 'Victorian country homes defy house price crash'. At first look, I wasn't sure if we were talking about 'houses in country areas of Victoria' or 'Victorian (era) houses in the country' but it appears that we're talking about areas of Victoria that are considered peri-urban.

According to La Trobe University webpage the term peri-urban can be described as 'neither urban nor rural' which doesn't seem very helpful but they do go on to say that peri-urban areas are 'largely defined as the areas that surround our metropolitan areas and cities...in Australia they frequently extend 100 kilometres beyond the suburban edge and it is estimated that over a quarter of million Victorians live in peri-urban areas'. In a local sense, this would mean that Geelong council would not be included but that Golden Plains and Surf Coast councils would be. (source here)

Anyway back to the article which is discussing the latest revaluations by the Victoria Valuer General which says 'the total value of residential property in Victorian country towns surged 11% to $264 billion' and that while median house prices are 'showing a 5.4% fall in metro home values to a median of $700,000' while at the same time 'country home values rose 3.9% to a median of $375,000'.

The writer, in talking about impacts of house prices dropping, said that 'the major impact has been felt in [Melbourne's] inner east...and the south-east. But...residential values in the outer west and peri-urban regions of Melbourne within the urban growth boundary had 'held their own' reflecting their relative affordability and appeal to first home buyers given stamp duty exemptions for homes under $600,000.'

It's interesting to think about us here in Geelong and as I've said before, the price spike that we saw a year or two ago locally didn't affect property values...they were still the same; the price people were willing to pay was simply greater that the value of the properties being sold (at that time).

Local property seems to be still holding a sense of value among the slight lowering of property prices from that price spike which might make them closer to their value anyway.

Article here