Bunninyong Area Property Watch Q1 2013
The following Property Watch report is the result of an investigation into the historic and current market trends of the Buninyong Area which includes the suburbs of Buninyong, Clarendon, Scotsburn, Durham Lead, Yendon, Mount Helen, Navigators and Mount Clear. The Buninyong Area sits approximately thirteen kilometres south of the Ballarat town centre and forms a large proportion of the Ballarat local government area (LGA), also spanning neighbouring Golden Plains and Moorabool municipal districts.
The Buninyong Area housing market has remained consistent since October 2008 averaging fifty transactions per half year period. Albeit a decrease for total number of transactions historically, the Buninyong Area median price has surged to new heights peaking at $355,000 registering a substantial 18.3 per cent increase for the annual period ending October 2012. It appears that the period of low interest rates following the Global Financial Crisis (GFC) has assisted investors allowing an increase in their purchasing power. This being said, the Buninyong Areas recent spike in median price can be similarly associated with the increase in high-end product and decrease in entry level sales as seen in the Buninyong Area House Price Point Analysis.
As evidenced in the above Sales Cycle table, the Buninyong Area is exceeding the median price of the neighbouring Ballarat Area by $70,000 (19 per cent) at October 2012. This indicates that while Ballarat continues to intensify and vacant residential lots fast become obsolete (-9.3 per cent p.a. since October 2002), a sprawl toward outlying suburbs like Buninyong is increasing to support regional Victorians appetite for larger lifestyle lots of which Buninyong boasts 84 per cent of lots greater than 800m2.
As mentioned previously, the Buninyong Area median housing price has performed favourably due to the increase in high-end product and similar decrease in entry level housing sales. The Buninyong Area price point analysis (below) indicates an increased appetite for the higher end product with sales between $300,000 and $400,000 as well as $400,000+ markets increasing 19 and 17 per cent respectively. Alternately, the Buninyong Area has witnessed a 37 per cent decline in total housing sales under $300,000.
The Buninyong Area vacant land market has been historically improving and recently saw the median price peak at $145,900 at the 6-month period ending April 2012. However, with this peak of median price along with the number of total transactions declining since October 2010, the Buninyong Area can expect a correction in vacant land pricing only further enticing investment and development enquiry for the Buninyong Area.
While the majority of regional Victorian centres have seen decreasing activity levels across residential markets, there remains to be positive sentiment in the Buninyong Area and surrounding municipalities with the continual increase in median price and consumer confidence. With this continuation of current trends and sound investment landscape the Buninyong Area will maintain its residential market consistency, setting the scene for a positive 2013.