Gippsland | Property Market Snapshot

Median house prices rose more than 20% in the previous 12 month period across the Gippsland region – but are we finally due for a market correction?

As the Reserve Bank begins to apply the brakes with consecutive rate increases, it’s important to step back from the media frenzy – it’s certainly not all doom and gloom in Gippsland. Whilst agents have reported a slight decline in enquiry levels over the previous month – which was to be expected – we are still seeing well-priced and well-presented stock selling in a matter of days. An exceptionally tight rental market, with a vacancy rate of 1% or less becoming the norm across the region, means that more first home buyers are seeking to enter the market rather than ‘wait it out’ and rent.

Rental vacancy rates currently sit at 1% or less

Entry level property is now priced above the $300,000 mark, with very limited properties on the market below this level, and current interest rates mean it is often cheaper to make mortgage payments than it is to rent. In terms of construction, the material shortage is now stabilising, however build costs remain high. The increase in the value of vacant land has meant that some owners have elected to sell their blocks for a healthy profit and purchase an established dwelling, instead of building at these increased rates.

With over 150 parties on the waiting list for the next stage of some Gippsland subdivisions, the demand for land is definitely still there!

In summary, interest rates are still historically low, and the buyers are still circling, especially in our well-positioned region. We look forward to keeping you updated as the year progresses.  

Rosheen Stephenson
Regional Director
— Gippsland Property Valuers
AAPI CPV
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