Property val­ues in­creas­ing

Benalla Ensign - - News - By Si­mon Rup­pert

There is good news for Be­nalla home­own­ers and property in­vestors with the Real Es­tate In­sti­tute of Vic­to­ria (REIV) high­light­ing an in­crease in av­er­age property val­ues of 8.8 per cent in the past 12 months.

Be­nalla Res­i­den­tial Ru­ral’s David MacKin­non said while there had been a rise, the ac­tual fig­ure might not be quite as high.

‘‘Pricefinder, who we use, lists 2017 me­dian ris­ing 6.3 per cent on sales of 297 houses, which is the largest num­ber since 2002 when 325 house sold,’’ Mr MacKin­non said.

‘‘They quote 2016 with the same 6.3 per cent, which is highly un­likely.

‘‘This is the rea­son I have some doubt about the ac­cu­racy of the stats. Cur­rently they have 6.4 per cent for 2018.

‘‘There’s a cou­ple of rea­sons for the ac­tiv­ity . . . The state gov­ern­ment rein­tro­duced stamp duty re­lief for ex­ist­ing houses for first-home own­ers and they came back into the mar­ket in strength.

‘‘They were com­pet­ing with in­vestors, many from Mel­bourne and other larger cen­tres, but also Be­nalla, who were gam­bling for a start that the John Hol­land con­sor­tium would get the go ahead.

‘‘When it did, sell­ing a house in the $180 000 to $300 000 didn’t take very long.

‘‘I be­lieve that pace has slowed cur­rently, which it nor­mally does in win­ter any­way, but I get the feel­ing that the mar­ket will con­tinue to rise for the re­main­der of 2018 as we get closer to when the var­i­ous new busi­nesses ac­tu­ally start pro­duc­ing.

‘‘With the ex­plo­sion of new jobs in such a short time I see the mar­ket set­tling down next year un­less there are em­ploy­ees of th­ese busi­nesses who com­mute from cen­tres like Wan­garatta or Shep­par­ton who de­cide to move to Be­nalla.’’

With con­stant talk of the Mel­bourne hous­ing bub­ble and its pro­jected col­lapse, some po­ten­tial buy­ers might be hold­ing off to see what the fu­ture brings.

How­ever, Mr MacKin­non said the Be­nalla mar­ket would not nec­es­sar­ily be af­fected by what hap­pens in big cities, at least not at the same pace.

‘‘The Mel­bourne and Syd­ney markets are driven by spec­u­la­tion and cheap money,’’ he said.

‘‘The Be­nalla mar­ket driven by jobs.

‘‘We have been cry­ing out for new busi­nesses to come here and we can thank the new coun­cil for get­ting it done.

‘‘Right now banks are rais­ing home and in­vestor loan in­ter­est rates.

‘‘This, com­bined with fall­ing prices in Mel­bourne, I be­lieve the speed of de­cline in house prices will pick up.

‘‘The loans are far higher in Mel­bourne com­pared to here, so the im­pact of neg­a­tive eq­uity in a loan will be sooner rather than later.’’ is

On the way up: Be­nalla property prices are on the rise.

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