The median house price in regional Victoria has reached a record high of $636,500, according to recent data from the Real Estate Institute of Victoria (REIV). This increase is largely attributed to investors seeking rental properties rather than individuals looking for homes to live in. Damian Portaro, the REIV regional director, noted that the rising prices are driven by buyers' advocates and investors returning to the market after a hiatus during the COVID-19 pandemic. "Investors left the market during COVID and have come back in and have focused on regional Victoria because it's far more affordable than Melbourne," he said.

In Mildura, the average house price is $515,000, meaning that $636,500 could secure a new four-bedroom, two-bathroom home in newer estates on the outskirts of the city. Portaro explained that homes priced around $600,000 in Mildura are typically modern, brick veneer properties. However, he pointed out that the gap between Mildura's average price and the regional median is narrowing, with prices in the city steadily increasing over the past five years. "Houses that I was selling five years ago for $350,000, I'm now selling for over $500,000," he said. A surplus of land is helping to keep prices lower in Mildura, with hundreds of blocks available for sale.

Just north of Mildura, in Red Cliffs, the average house price is $450,000. This means that $636,500 could buy a new three- or four-bedroom home in a new estate or a similar-sized house on a larger block just outside town.

In Ballarat, the average house price is nearly equal to the regional median. For $636,500, buyers can expect to find mostly two-bedroom homes, with some three-bedroom period and heritage properties available. The proximity to Melbourne and the lifestyle options in Ballarat contribute to its appeal. Portaro noted that during the pandemic, many people moved to regional centers like Ballarat, Bendigo, and Geelong for commuting options. In suburban areas like Canadian and Soldiers Hill, prices drop closer to $400,000, allowing for more options within the $636,500 budget.

Daylesford presents a different scenario, with an average house price of $860,000. Here, the regional median may only afford a block of land or a one-bedroom unit, as the market is influenced by investors seeking properties for short-term rentals.

Warrnambool, located three hours from Melbourne, has an average house price around $600,000. This allows for a variety of options, including renovated five-bedroom homes or new three-bedroom properties in expanding estates. Portaro mentioned that the steady availability of land in Warrnambool helps maintain consistent prices.

In Bendigo, the average house price has decreased to just under $600,000 from a peak of nearly $700,000. This means that the regional median can buy a three-bedroom fixer-upper or a two-bedroom house in a desirable area. Castlemaine, located closer to Melbourne, has an average price of $740,000.

Wodonga's average house price has surpassed $600,000, driven by demand from buyers in both Melbourne and Sydney. Despite this, $636,500 can still secure a range of properties, from townhouses to spacious homes.

In Gippsland, house prices vary significantly. Drouin and Warragul hover around the regional median, while Morwell, Traralgon, and Sale have lower average prices. Portaro emphasized that location and population density are key factors in this region.

Shepparton, with an average house price of $482,250, remains below the regional median. Portaro described Shepparton as "a little under-valued," suggesting that the median price can still buy a four-bedroom home there.

Overall, the increase in investment demand is a consistent theme across regional Victoria. Portaro noted that many buyers' advocates are now actively seeking rental properties in the regions, which are seen as more profitable. "It really is investment demand driving prices," he said, highlighting the growing interest in areas like Mildura, Albury-Wodonga, and Ballarat.

As the market continues to evolve, the dynamics of regional housing prices reflect broader trends in investment and lifestyle choices among buyers.