Monday, 15 August 2016

Luke Goggin Real Estate

I often get asked “What is happening with the Real Estate Market at the moment?”
What a difficult question because it varies from month to month.  The Election shied away most of the Investors. And the end of financial year is where things tend to slow down a bit. But as we are coming into Spring and the phones are ringing, which brings me to another question which I also get asked a lot. “Is the Bendigo Market  strong?” 

A lot of factors do affect the market and I decided to do a bit of research into the local factors which are unique to Bendigo. Our current population at 2015 is sitting at 108,437 and is expected to grow to 112,853 by the end of 2016. Our population is expected to grow to 156,151 by 2036. Our expected yearly growth rate is 1386 people. We build in the Bendigo area approximately 1000 new homes annually.   So whilst the council is making provision to provide this land supply to  accommodate these 1000 new homes each year, you could see easily that demand could quickly outstrip supply. Searching today, on it shows only 571 parcels of land presently available. If the 1000 homes are to be built this year it could leave us with only 71 blocks available. With this in mind you would expect land prices to increase as this occurs. We have 45,451 households in Bendigo with the average size being 2.44 per dwelling. By 2036 it is predicted that 58% of households will have only one or two people. Altogether this means that 18000 new homes will be required.

The new Hospital is going to have a major positive effect on the local market. Over time as the Hospital grows into its new home, they will be employing more personnel.  This is going to impact on not only our local employment figures but on local population figures as it attracts new people to the region.  The hospital is being built to assure future growth and attract people to our region who see the security in an area serviced by world class medical facilities.

Historically properties in Bendigo gain 100% capital growth over a 10 year period and this all points to  Bendigo being  solid and here for the long haul. Huge growth over the next 20 years especially  when we reach the expected population figure of 156,151. So yes I feel quite comfortable saying the Bendigo real Estate market is strong and robust and is a great area to be investing your money for the long haul. We all know the old saying nothing is safer than bricks and mortar.

*All statistics mentioned have been taken from the City of Greater Bendigo Website
Written by Sue Opie for Luke Goggin Real Estate

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