Looking a little bit further afield for your next property investment? Based on recent market performance, choosing regional Victorian towns might just give you that opportunity with some profitable returns. 

It’s no surprise that people are venturing into areas like regional VIC and NSW. With lower entry costs and higher yields, buying property in regional Victoria offers open space, proximity to nature, and a lifestyle you’d be hard-pressed to find in the inner city. 

The rise in remote working and the ability to work from almost anywhere has allowed more people to search for peace and quiet - and savvy investors are doing the same.

If you’re unsure which areas will tick all the boxes, keep reading to discover 7 of the best regional Victorian towns for property investments in 2022. 

Once the intense lockdown period was over, Melbourne saw a decline in city dwellers. Those who lived in the city wanted to move to regional Victoria to escape the hectic lifestyle.

Largely unaffected by rising prices, long commute times and general congestion, regional Victoria has seen a resurgence in popularity and population.

This rise in popularity has seen emerging opportunities for investors. 

The latest data from Domain shows that rental prices in country and coastal towns across regional Victoria are rising three times faster than Melbourne rentals. Within 12 months up to March 2022, rent in regional Victoria rose by 9.1% (with median rental prices at $420 a week). 

If we drill down even further, we can see that the price of rentals in the Wellington Shire have skyrocketed by more than 23% over the past year (followed by the council areas of Moira and Indigo, rising by at least 20% each). 

So, why have more investors been capitalising on regional Victorian towns?

• Record price growth: limited housing stocks and skyrocketing demand from local and relocating tenants have seen regional Victorian towns outperform even the nearest capital city of Melbourne.
  
  
• Surge in tenant demand: with more Melburnians able to work remotely, competition has never been higher in regional Victoria. This has allowed investors to charge a premium for rent and score a high rental yield.
  
  
• Low chance of vacancy: high competition means investors are assured of stable income by securing a rental in one of Victoria's regional towns.

If your investor’s instincts are tingling, they’d be right. Here’s our take on the best areas for regional property investments across the state.

Ballarat is the epicentre of regional living. This city is only 90 minutes from Melbourne and is filled with turn-of-the-century architecture.

With a more-than-attractive average house price, it’s no surprise that Melburnians gravitated towards the historic city of Ballarat. Residents enjoy a comfortable lifestyle with many schools, sports centres, and shopping malls right at their doorstep.

Ballarat combines comfortable country living with Federation charm and a sprinkling of Melbourne’s most delicious coffee shops. This increase in popularity has seen Ballarat shift from a quiet rural town to a bustling and vibrant city.

With a population of just over 113,000, Ballarat has a substantial property portfolio to offer those interested in investing in rural property outside of Melbourne.

Only an hour from Melbourne and sitting at the edge of Victoria’s South-Westerly coast, Geelong is Victoria’s second-largest city.

Geelong is home to multicultural exhibitions, a large commercial centre, and is the gateway to the Great Ocean Road. Colourful sculptures and cultural icons lie scattered along the waterfront, particularly at the famous Baywalk Bollards. 

City dwellers looking to downsize and chill out would find this checks a lot of their boxes. Property investors enjoyed capital gains of 5.32% over the last 12 months in Geelong.

Bendigo was built on the gold rush legacy after gold was discovered here in the 1850s. Much like Ballarat, this city is filled with Federation-esque buildings and is known as the ceramic centre of Victoria.

Located 150km from Melbourne, Bendigo attracts visitors from far and wide who want to enjoy the rich art, culture, live music tram tours, and blockbuster exhibitions. 

Bendigo offers a laid-back community vibe while giving its locals opportunities to excel in educational, work and lifestyle pursuits. Outfitted with high schools and popular universities, it's becoming more popular by the day (and it’s not hard to see why!).

The vibrant city was also named one of the best-performing suburbs in Australia in terms of capital gains - the city saw returning capital gains of 28.78% for property investors.

Approximately 181 km north-northeast of Melbourne in the Goulburn Valley, Shepparton is the heart of Victoria’s agriculture and food-based industries, from meat and dairy to fruit and grain crops.

Sitting on the Goulburn River, Shepparton attracts visitors from all over the country. The city hosts the Moooving Art project, which involves local artists painting fibreglass cows displayed in tourist locations throughout the city. It also boasts a diverse range of sporting venues, art centres and delicious wines. 

Shepparton connects rural living with cultural experience and doesn’t skip on delicious food, tasty wines, and warm climates. For those looking to invest in Shepparton, investment properties are likely to rent out quickly with the current vacancy rates sitting at a low 0.44 per cent.

Named the number 1 most livable town in Victoria, Warrnambool is an idyllic escape from Melbourne’s concrete jungle.

It has fantastic beaches, beautiful parks, gardens, breathtaking views and plenty of recreational activities. For the story chasers, the coastal town is known for its landmark shipwrecks.

The last couple of years have seen city slickers escape the 'big smoke' to find a more comfortable lifestyle in the region, boosting the property market in Warrnambool.

Wodonga might be real estate’s best-kept secret. The town sits next to Albury along the NSW/VIC border, and has access to the lush landscape of New South Wales.

Located 3 hours and 30 minutes from Melbourne, this rural Victorian town has regional town charm while also seeing an increase in quality infrastructure. This includes world-class health facilities, cultural attractions, and educational infrastructure including two universities and two TAFEs.

Wodonga is more affordable than Ballarat and Geelong while still being located along the Hume Highway. Plus, this regional Victorian town boasts a tight market with strong rental yields and vacancy rates as low as 0.4%.

With bustling bars and cafes, a vibrant cultural scene and picturesque landscapes, Wodonga’s lifestyle is one that locals can afford to enjoy.

Located South of Wodonga and 2 hours and 40 mins from Melbourne, Wangaratta has a diverse economy and is home to major manufacturing, transport, and distribution activities.

The town boasts several art galleries, festivals, and events throughout the year, including the annual Wangaratta Festival of Jazz and Blues and La Dolce Vita Festival.

Families can also choose from various childcare and kindergarten services, 20 primary schools, a specialist school and 3 secondary schools.

As Australia finds its feet post-pandemic, the ‘Exodus to Affordable Lifestyle’ continues to dominate Australian real estate. People are exploring new opportunities, new locations and a new life outside big cities. 

Regional Victoria seems to be hot property with tenants wanting to be closer to serene landscapes, and delicious local food, while taking advantage of the country lifestyle.

So, if you’re serious about a regional investment property in Victoria, you’ve got plenty of options for booming cities, flourishing landscapes and affordable lifestyles (all within commutable distance from Melbourne!). 

We expect the popularity in regional areas to continue growing well into 2023, so there’s no time like the present to find your next investment!

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