An attractive combination of affordable, freestanding homes, a tight rental market and a diverse economy has driven huge demand in a historic gold rush city not far from Melbourne.
Melbourne’s property market has lagged other capital cities for several years, and recent forecasts from realestate.com.au anticipate growth of between 5-7% in 2026.
But a couple of hours away it’s a very different story with the regional city of Bendigo in the midst of a property market boom – and local real estate agents say an influx of demand from interstate buyer’s agents is continuing to drive up competition.
Nekti Tzouroutis from Bendigo Real Estate said late last year he was receiving dozens of calls a day from buyer’s agents looking to secure high-yielding properties for clients.
“Over the last 15 months there’s been a lot of enquiry coming through buyer’s agents, but then once we got through the early- to mid-part of last year, it was hot. The demand was absolutely hot,” Mr Tzouroutis told realestate.com.au.
“Personally, I was getting 25-30 calls a day off different buyer’s agents around the country.”
Home prices in the Bendigo region are rising rapidly as first-home buyers and investors compete for affordable freestanding homes. Picture: Getty
Additional demand from first-home buyers tapping into expanded government support has driven competition further, he said. The 5% Deposit Scheme, previously capped at 35,000 first-home buyers annually, became uncapped in October last year.
"Anyone who bought at the start of last year has already seen very, very, very good growth in the last 12 months," Mr Tzouroutis said.
“The market in Bendigo for the next six to 12 months, in my opinion, is going to be as buoyant as what it has over the last 12 to 15 months."
Analysis of PropTrack data shows four of Victoria’s top five performing suburbs in the December quarter were located in the Bendigo region, with house prices in California Gully, Ironbark and North Bendigo recording double-digit growth in just three months, and around 20% over the year.
Top performing suburbs in Victoria
| Suburb | Region (SA4) | Property type | Current value | Quarterly growth | Annual growth | |
| 1 | California Gully | Bendigo | house | $531,000 | 11% | 21% |
| 2 | Ironbark | Bendigo | house | $569,000 | 10% | 18% |
| 3 | Morwell | Latrobe - Gippsland | house | $403,000 | 10% | 21% |
| 4 | North Bendigo | Bendigo | house | $568,000 | 10% | 20% |
| 5 | Jackass Flat | Bendigo | house | $633,000 | 9% | 21% |
| 6 | Long Gully | Bendigo | house | $509,000 | 9% | 20% |
| 7 | Alfredton | Ballarat | unit | $395,000 | 9% | 14% |
| 8 | Corio | Geelong | house | $561,000 | 9% | 20% |
| 9 | East Bendigo | Bendigo | house | $587,000 | 9% | 16% |
| 10 | Churchill | Latrobe - Gippsland | house | $399,000 | 9% | 17% |
| 11 | Wendouree | Ballarat | unit | $385,000 | 9% | 12% |
| 12 | Irymple | North West | house | $632,000 | 9% | 16% |
| 13 | Mount Macedon | Melbourne - North West | house | $1,574,000 | 9% | 10% |
| 14 | Eaglehawk | Bendigo | house | $584,000 | 9% | 19% |
| 15 | Ballarat North | Ballarat | unit | $416,000 | 9% | 14% |
| 16 | Traralgon | Latrobe - Gippsland | house | $573,000 | 9% | 18% |
| 17 | Bendigo | Bendigo | house | $644,000 | 9% | 15% |
| 18 | Moe | Latrobe - Gippsland | house | $410,000 | 9% | 16% |
| 19 | White Hills | Bendigo | house | $591,000 | 9% | 17% |
| 20 | Ballarat East | Ballarat | unit | $413,000 | 8% | 17% |
Nationally, the top performing suburbs in the December quarter were largely concentrated in Western Australia and Queensland, with affordability pressures pushing many buyers to units over freestanding houses.
Andrew Murphy from Bendigo Ballarat Real Estate said strong demand had continued into the new year.
“We saw a lot of activity through our market in 2025 with buyer advocates purchasing properties on behalf of investors, and that has continued at the start of 2026 as well,” he said.
Dozens of buyers inspected this villa in Bendigo during its first open in January. The property is under offer. Picture: realestate.com.au/sold
He pointed to a listing in the Bendigo suburb of Flora Hill, which saw 25 groups attend the first open home. It received several offers on the day, and the two bedroom villa at 1/12 Retreat Road is now under offer.
“That one was in the sub-$400,000 price point, so it's an affordable price point in Flora Hill.”
According to PropTrack, unit values in Flora Hill have risen 15% in the past 12 months to a median $445,000. House prices are also up 15% to $592,000.
Mr Murphy noted low vacancy rates were a drawcard for investors. As of December, the vacancy rate for the Bendigo region was 1.43% according to PropTrack, which is less than half the 3% figure considered to signal a balanced and healthy rental market.
Renovated character homes close to the Bendigo CBD remain out of reach for first-home buyers using a government guarantee. Picture: realestate.com.au
The affordable end of the market is where the most pressure is being felt, he said, pointing to price caps for first-home buyers accessing the government guarantee scheme, which is $650,000 in regional Victoria.
“First-home buyers with the grant are looking at properties up to $650,000, and we are seeing buyer advocates with investors up to about $700,000,” he said.
“Stock levels in that sort of price point are quite low, so there's high demand and low stock, so therefore buyers are having to compete for properties in that price range.”
Investors seek freestanding homes
Despite the recent growth, Melbourne-based buyer’s agent Cate Bakos said freestanding homes in regional cities like Bendigo continue to offer a much more affordable entry point compared to the capital.
“When you're dealing with a sub-$600,000 price point, and you're wanting a house that's commuting distance to a capital city, but also in an established city of its own, and with all of the amenity that comes from a large regional city, Bendigo, and Ballarat for that matter, are definitely viable options,” she said.
“You can get houses in the sub-$600,000 price point in these markets, and the rental yields are better than capital city rental yields also.”
Melbourne buyers advocate Cate Bakos said Bendigo is a viable option for buyers seeking a freestanding home in the sub-$600K price point.
But she warned that not every home is investment grade, with some interstate buyer’s agents purchasing properties on behalf of clients sight-unseen.
“You're seeing enormous demand and for some buyers, their buyer's agents aren't necessarily inspecting in person, they're reliant on agent videos.
“If they're not inspected in person, and if the buyer's agent isn't familiar with the area, there is an enormous risk that the buyer could purchase in a not-so-great area, or a property that's not so suitable as a rental property.”
Character homes close to the city centre are popular with lifestyle buyers and investors seeking short-stay accommodation. Picture: realestate.com.au
While investors and first-home buyers are driving up the more affordable end of the market, local agent Jen Wallace said the town’s heritage architecture, good schools and food and arts scene is also drawing families and young professionals to the upper end of the market.
“Bendigo has got some stunning heritage properties close to the city,” Ms Wallace said.
“Anything around the cathedral and Girton Grammar [School] is attracting a lot of buyers.
“We're central, we're an hour from Daylesford, we're an hour from Echuca, we're two hours from Melbourne - the location is great. A lot of people are coming up here because of the lifestyle," she said.
Get your realEstimate™
Track your property's value and unlock insights and data tailored for property owners.
“Executive families, and we're getting a lot of doctors, lifestyle buyers or investors looking for blue-chip properties with flexible, long-term value."
She said properties in the centre of town were increasingly popular with investors seeking a property to lease as short-term holiday accommodation.
Help us improve your reading experience
Got a minute? Your feedback will help us build a better experience for you.
Help us improve this page
English (US) · 