Ballarat Property Market Update 2nd Half 2026
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 for professionals and families to live.
Property Trends
In Q2 2026, Ballarat recorded a median house price of $620,000 and a median unit price of $445,000. This represents an annual (Q2 2025 – Q2 2026) median price growth of 13.8% for houses and 15.6% for units. Comparing Q2 2025 and Q2 2026, total sales declined by -21.0% (to 518 sales in Q2 2026) for houses, but increased by 1.4% (to 147 sales in Q2 2026) for units. This suggests tight market conditions for both property types, particularly an undersupply in house stock. Thus, now remain an ideal time for owners to capitalise on their investments. For buyers, there is a limited number of new ready-to-sell stock in the 2026 construction pipeline. Thus, buyers must act fast.
Project Development
Ballarat will see approximately $332.2M of new projects commencing in 2026. Although there are several residential projects planned for 2026, the number of houses (25), units (113), and townhouses (53) in the pipeline is not enough; especially as there were 518 houses and 147 units sold in Q2 2026 alone. This increases the potential of a housing undersupply, which will push up prices for all property types.
Rental Market & Growth
House rental yield in Ballarat was 3.4% as of June 2026, higher than Melbourne Metro (3.2%). This is paired with a 6.5% growth in the median house rental price in the past 12 months to Q2 2026, to $460 per week; along with a -13.4% decline in the number of houses rented (to 354 houses in Q2 2026). This confirms there is 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 0.6% in June 2026, on par with Ballarat LGA’s average of 0.6%, but lower than Melbourne Metro’s 2.0%. Vacancy rates in the past 12 months have decreased, which suggests a tighter rental market. Furthermore, a 0.6% vacancy rate is significantly below the 3.0% benchmark, suggesting quicker occupancy of rental homes in Ballarat. This is a conducive environment for investors, even with higher median house and unit sales prices (thus, entry price) in the past 12 months to Q2 2026.
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