Property experts warns of Vic growth killers

Leading property experts have warned investors that soaring prices in regional Victorian towns like Mildura and Shepparton may not last, with some markets described as “growth traps.”

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Investors chasing cheap houses in regional Victoria could be buying into growth traps, with leading experts warning soaring prices in towns like Mildura and Shepparton may not last.

PropTrack data reveals Mildura was the busiest regional market in the state over the past financial year, with 706 homes changing hands.

Shepparton was next at 632, then Traralgon, 530, Warrnambool, 473, and Armstrong Creek, 455.
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High sales volumes have sparked speculation investor activity is returning to the regions, but experts are urging buyers to tread carefully.

OpenCorp chief executive Cam McLellan said regional towns had been distorted by lifestyle demand.

“That’s not investment grade growth it’s emotional overshooting,” Mr McLellan said.

OpenCorp chief executive Cam McLellan warns against investing in some regional Victorian markets, stating, “Selling a metro property with limited new land … isn’t a trade-up, it’s a trade-off.”

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Some of Victoria’s most popular regional suburbs, including Geelong’s Lara, Torquay, Ocean Grove, Corio, and Highton, could be facing a property “time bomb,” as experts warn investors about unsustainable growth.

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“Price growth is short lived as long term demand doesn’t pressure supply levels.”

He said he advises his clients to not invest in regional Victorian markets.
“Selling a metro property with limited new land and strong local jobs to buy into a regional area with cheap land and weaker demand isn’t a trade-up, it’s a trade-off,” Mr McLellan said.

“Most regional towns have an oversupply of land, that’s a long-term growth killer.

“Prices might spike temporarily from lifestyle demand or affordability pressures, but once new land is released or migration slows, growth flattens out.”

Mortgage Choice broker Rhys Elmi believes that while buyer interest is high, “in terms of regional Victoria … I don’t see the value right now.”

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Mortgage Choice broker Rhys Elmi said while buyer interest was soaring across Victoria, regional investment was becoming harder to justify.

Mr Elmi said while some regional buyers were driven by affordability or lifestyle changes, most first-home buyers and investors still aimed to secure houses rather than units, even if it meant compromising on location.

“There needs to be a bit of a mindset shift,” he said.

“Start small, build equity, and turn that first property into an investment later.

“That’s how you build long-term wealth.”

The Torquay Surf Life Saving Club is not mentioned in the provided article. The text is a real estate story focused on investment risks in regional Victorian towns. Photo: Alex Coppel

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Regional Victoria Top 20 Suburbs By Sales Volumes

Source: PropTrack Market Trends July 2025

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