Some of Victoria’s finest wine regions are proving to be the best drops on the market, outperforming Melbourne for property price growth and expected to continue to do so.
The Mornington Peninsula, Macedon Ranges and Yarra Ranges regions eclipsed the city’s average annual median house price increases across the past 20 years, latest Propertyology research shows.
“With an average annual increase in median house prices over the last 20 years of 7.9 per cent, Melbourne shares the mantle with Hobart as Australia’s best-performed capital city,” Propertyology head of research Simon Pressley said.
“The property market of Australian wine regions such as Mornington Peninsula (9 per cent), Macedon Ranges (8.6 per cent) and Yarra Ranges (8.4 per cent) … were superior to Melbourne.”
Mr Pressley said Melbourne’s annual average change in apartment prices of 6.7 per cent was also inferior to other wine locations across the country, including Tasmania’s Launceston (7.5 per cent), NSW’s Shoalhaven (7.8 per cent), and Mudgee (7.6 per cent) and Yankalilla (7 per cent) in South Australia.
“Historical evidence confirms that real estate performance does not directly correlate with massive population growth,” he said.
“Wine region wonders perform well because of a combination of lifestyle, local confidence, housing affordability and controlled local housing supply.
“These property markets have proven to be solid performers and less volatile than big city markets.”
Mr Pressley said wine regions offered multifaceted economies that would continue to attract and retain residents, while also boosting the market.
“The economy in most of these communities blends general agriculture with viticulture, manufacturing — especially food related — and some amazing tourism experiences,” he said.
“The demographics of these vibrant vino wonders include a mix of multi-generational farmers, some affluent white-collar professionals who have elected to escape stressful city life, creative artistic types, and some retired Baby Boomers who can finally rid themselves of the rat race.”
“While it’s easy to appreciate why local residents describe their lifestyle as idyllic, the cost of housing often is still quite affordable.”
McEwing & Partners Mornington director Quentin McEwing said it was no surprise the Mornington Peninsula was a stronger performer than Melbourne, because it had so much to offer.
“It’s got value for money, lifestyle, space and a lot of people come down for the security and safety,” he said.
“It’s also the evolution of people’s careers and types of businesses, it is allowing for more mobility and remote access.
“We have golf courses, surf beaches, so many culinary experiences and the wineries are absolutely amazing.
“When you speak to people, they wish they had have (moved here) 10 years earlier.”