Moving to regional Victoria
For decades now we’ve heard of people moving out of big cities for the less frenetic pace of regional cities and towns. A ‘sea change’ or ‘tree change’ is seen as a way to slow down the pace of life, beat the Melbourne traffic and even reset your life.
Plus, of course, properties are, on average, much cheaper in the regions. The median house price across Melbourne is over $1 million, while it sits at around $570,000 outside the metro area.
So what are the practicalities of shifting away from Melbourne? And what are the financial implications of buying or renting in regional Victoria?
Escaping the city
Barwon Heads and Point Lonsdale (the actual filming locations for the popular TV show “Sea Change” from the late 1990s), as well as many other coastal towns, have seen a boost to their populations over the past 25 years. Similarly, regional Victoria – from Castlemaine (“north Northcote”) and Kyneton to Ballarat and Bendigo – saw a steady trickle of city slickers and retirees relocate from the big smoke.
Then Covid hit.
And with the virus came working from home for many people who suddenly experienced the reality of ‘telecommuting’. For some, escaping the city became a literal escape from lockdowns (Melbourne had six separate lockdowns totalling 262 days, in case you’ve forgotten). With Zoom and Teams, working remotely meant that it was possible to live remotely.
Five years after Covid hit – and despite some businesses trying to get employees to return to the office – remote and hybrid work is here to stay for many administrative and knowledge workers.
Regional population shifts: by the numbers
With Covid in the rear-view mirror, Victoria’s regional housing market has remained fairly strong. While Australian capital city property prices have seen a 0.7% drop over summer 2024–5, regions have posted a 1% increase. After declining values over the past couple of years, regions seem to be showing strong signs of recovery as we settle into a ‘new normal’.
These trends have been significantly shaped by more property listings in Melbourne, the relative affordability of the regions and ongoing internal migration away from Melbourne.
Population shifts in Victoria increased significantly in council areas such as Wangaratta in the state’s north east (which includes Glenrowan and the King Valley), Moira (Cobram, Yarrawonga, Numurkah), Strathbogie (Euroa, Violet Town, Nagambie), and Queenscliff (including Point Lonsdale).
Indeed, Moorabool Shire, which takes in the towns of Bacchus Marsh, Ballan, and Blackwood to the west of Melbourne, was Australia’s fourth fastest growing local government area in 2024.
And not all of the people moving to the hills or the coast are retirees. Moorabool figures show that more than three quarters of new arrivals were millennials and Gen Xers.
Strength in Victoria’s regional towns
Across Victoria, movement of people from the city to the regions is almost 20% above pre-Covid levels. This has helped to support housing demand, since more people are now able to choose location and lifestyle over city-based workplaces. This supports regional housing demand.
And with more people comes more business activity and improved amenities.
According to figures released by Westpac, there was an astonishing 18% rise in loans to businesses in regional Victorian towns over a two-year period to 2025. This eclipsed city-based business loans, which saw an 11% rise. Regions are growing, services are improving, and Melburnians are voting with their feet.
Regional rental and investment opportunities
Although the regional population boom has seen rent increases in many Victorian towns, average rents are still lower than in Melbourne. At the end of 2024, Melbourne’s average rent was $580 a month (much higher in the inner city). Regional rents were $450.
This difference is enough to encourage many Melbourne renters to jump off the hamster wheel and shift away from the state capital.
Despite this, there’s still many incentives for investors to buy into flourishing regional markets. While already-inflated city rents increased 0.3% over the last quarter, regions clocked a 1.6% rise. The supply of dwellings is still struggling to keep up with increasing demand, meaning it’s well worth investors looking to buy existing (or construct new) property in regional Victoria.
Talk to a loans expert
At Mortgage Broker Melbourne we work with clients to find properties that match their needs. If you’re thinking about buying property in regional Victoria, we can provide information and advice on booming locations as well as potential bargains.
At no cost to you – ever – we assess your financial situation and your home-ownership dreams. We then narrow down different home loans that will suit your best interest. There’s no obligation to take out a loan we suggest; the ball is always in your court.
If you want to see whether buying in regional Victoria – whether to live or invest – contact the experienced team at Mortgage Broker Melbourne.
Contact Mortgage Broker Melbourne today.
Marc has been a professional lender for 28 years. After beginning his career in 1990 with a UK Building Society, he moved to Australia where he held several different retail banking roles. In 1999 it became clear to him that a mortgage broker would eventually become an obvious choice for someone looking for a home loan so he took the plunge and became an independent broker. He hasn’t looked back since!