Ballarat Property Market Update 1st Half 2025
Ballarat offers a perfect balance of heritage charm and modern amenities, with excellent schools, parks, and a thriving arts scene. Its affordable housing and easy access to Melbourne make it an ideal place to live.
Property Trends
In Q4 2024, Ballarat recorded a median house price of $510,000 and a median unit price of $362,000. This represents an annual (Q4 2023 - Q4 2024) price softening of -8.6% for houses and -6.0% for units. Comparing Q4 2023 and Q4 2024, total sales surged by 43.2% (to 613 sales in Q4 2024) for houses and 47.5% (to 146 sales in Q4 2024) for units, indicating a highly demanded market. Despite this, economic conditions and higher interest rates have impacted the market. This creates a more affordable opportunity for buyers. With very little ready-to-sell stock planned and requiring time for construction, there is a possibility for a price recovery.
Project Development
Ballarat will see approximately $63.2M of new projects commencing in 2025. Although there are a few new houses (to be confirmed, 1 project only) and units (4) planned in 2025, this is still not enough to satisfy the market. An undersupply in new housing stock can assist in stimulating a housing market price recovery sooner than later.
Rental Market & Growth
House rental yields in Ballarat was 3.6% as of December 2024, slightly higher than Melbourne Metro (3.1%). This is paired with a stable median house rental price in the past 12 months to Q4 2024, standing at $420 per week. The number of housed rented decreased by -31.1% (to 31 houses), indicating an undersupplied house rental market. With a more affordable entry price compared with Melbourne Metro, Ballarat is an attractive investment alternative.
Vacancy Rates & Property Investment
Ballarat recorded a vacancy rate of 1.6% in December 2024, well below Ballarat LGA’s average of 2.2% and Melbourne Metro’s 2.2%. Vacancy rates have increased in the past 12 months, due to a higher number of investors re-entering the rental market. However, a 1.6% vacancy rate is still well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting a tight rental demand and quicker occupancy of rental homes in Ballarat. This is a conducive environment for investors, especially with a more affordable house and unit price in Q4 2024.
