Ballarat

A region with increasing population, attributed by demographers to increased commuter activity arising from surging house and land prices in Melbourne coupled with public transport improvements between Ballarat and Melbourne.
With a vibrant arts culture, historic buildings on wide leafy streets, and award-winning country restaurants, Ballarat is a hot spot for tourists, especially history buffs and foodies.

The Ballarat commercial property market is driving by the local business scene, with a mix of commercial assets between retail and manufacturing industries. Strategic governments development have also offered investors an opportunity to enter a more dynamic and evolving market.

Yields for larger, standalone warehouses have tightened and currently sit at 5.75% – 6.25%. Land sales continue to remain steady; land rates are stabilising setting a new benchmark with a number of sales establishing market values.

Ballarat recorded aresidential  vacancy rate of 1.6% in June 2023, which is slightly above Melbourne Metro’s 1.3% average. Vacancy rates in Ballarat saw a slight spike in late 2022, potentially due to investors returning to market following a tight rental in early-mid 2022. However, the vacancy rate is still below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This suggests a conducive investment environment, especially with a more affordable property price in the past 12 months.

There have been higher discounts for both houses and units, of -6.9% and -5.4% respectively. Market conditions in Ballarat have now shifted to favour buyers, as vendors are willing to accept below the initial listing price. This creates new opportunities for buyers.