Mildura 2H Property Market Update 2nd Half 2024
Mildura in Victoria offers an affordable cost of living and a welcoming, multicultural community. Additionally, its sunny Mediterranean climate and proximity to stunning natural landscapes make it an ideal place for outdoor enthusiasts.
Property Trends
In Q3 2024, Mildura recorded a median house price of $445,000, and a median unit price of $310,000. This represents annual (Q3 2023 - Q3 2024) median price growth of 6.7% for houses and a -7.0% softening for units. Comparing Q3 2023 and Q3 2024, total sales increased by 18.1% for houses (to 163 sales in Q3 2024) and 11.8% for units (to 38 sales in Q3 2024). There is strong demand for both property types, particularly houses, which created a buffer against current cash rate hikes - hence median price growth. The unit market is slightly more affordable; however, with no new supply planned for construction, buyers should act fast.
Project Development
Mildura is set to see approximately $41.3M of new projects commencing construction in 2024. There is an absence of residential projects planned, thus there are no new houses or units on the horizon. With an increase in sales numbers in the past 12 months to Q3 2024, this suggests an undersupply of property stock is imminent. This will drive up property prices, for all stock types.
Rental Market & Growth
House rental yields in Mildura were 5.1% as of September 2024, higher than Mildura LGA’s 4.4% and Melbourne Metro’s 3.1%. This was paired with a 20.0% surge in median house rental price in the past 12 months, at $480 per week, and a 10.3% increase in the number of houses rented (to 172 rentals in Q3 2024). This indicates a highly demanded house rental market in Mildura. With a more affordable entry price than Melbourne Metro, Mildura is an ideal investment alternative.
Vacancy Rates & Property Investment
Mildura recorded a vacancy rate of 0.7% in September 2024, slightly above the Mildura LGA (0.6%) but well below Melbourne Metro (1.7%). Vacancy rates in Mildura remained relatively stable in the past 12 months, with some fluctuations due to the number of investors entering/exiting the rental market. That said, a 0.7% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, indicating quicker rental occupancy in Mildura. This is conducive for investors, even with a higher entry (sales) price in the past 12 months to Q3 2024.
