Investors may be flocking to this remote Victorian town, which is slowly gentrifying, but experts warn returns aren't guaranteed.
Mildura, on the banks of the Murray, is historic, charming and increasingly vibrant. It has also become an investor hotspot, though experts say returns aren't guaranteed and house hunters must be savvy.
This major horticultural centre, loved for its grapes and oranges, has emerged as Victoria's most active regional market, with 706 homes traded in the last financial year, according to PropTrack.
House prices in Mildura are up almost 10% in the past year, but the median house value is still less than $500,000. Picture: realestate.com.au/sold
Straddling the border with New South Wales and with South Australia about an hour and a half away, Mildura's property prices are climbing. Houses rose 9.5% to a median value of $485,000 in the year to July 2025. Apartments are up 3.2% to $325,000.
The city's population of nearly 57,000 is also rising, and has become an attractive market for brands and businesses.
This month came the news a new pilates studio is set to open in the city centre, with the lease secured by CBRE’s Director John Brown.
A newly opened Pilates studio in Mildura signals gentrification of the town is underway. Picture: Supplied
"We are seeing strong interest from national and boutique brands looking to establish in Mildura," Mr Brown said in a statement.
"The region’s lifestyle appeal and growing customer base make it an exciting market for health, wellness and retail businesses alike."
Signs of gentrification
Peter Koulizos, Master of Property at the University of Adelaide, says exercise studios are a hallmark of gentrification in action.
He claims there's an ABC of gentrification, which is alcohol, bikes and coffee - think small bars selling craft beers and Aperols, vintage bikes with baskets, and cafes selling a range of milk with their coffees.
But the XYZ factor now also applies, he says.
"X is for exercise precincts like gyms and pilates, Y is for yoga and Z is for zumba classes.
"If people are willing to pay $80 an hour for a personal trainer or $30 for a pilates or yoga session — especially hot yoga, which is pricier — it indicates that wealthier, white-collar workers on higher incomes have moved into the area."
The township of Mildura sits on the banks of the Murray River. Picture: realestate.com.au
Core components of gentrification are character homes ripe for renovation and proximity to water, Mr Koulizos added.
"In Mildura, there are character homes, particularly around the main street. And the city's riverfront has been beautified. These are classic signs that Mildura is undergoing gentrification."
He adds that with capital cities having already been gentrified, the process is now flowing to regional areas — especially the sea- and tree-change locations relatively close to capital cities.
Ripe for investment
Mildura-based Mortgage Choice broker Jessica Rix, who grew up in the city, has seen a significant surge in out-of-town property interest over the past 12 months.
"Traditionally, I've relied on referrals and locals, but over the last year, enquiries have come from all over the place. The town is definitely diversifying. People have discovered Mildura," she said.
"Mildura offers a superb lifestyle and, compared to the capital cities, remains affordable."
She says while the city isn't yet fully gentrified, "it's heading there".
"The council has developed the riverfront so it's really pretty. We've got great cafes and eateries; the town is like a food bowl. You have everything you want here, plus we have great weather, beautiful stars and open skies."
Ms Rix says 70% of her enquiries come from investors — mainly through buyers agents.
"I've had multiple investors coming from Melbourne, Sydney and even Queensland. Those properties under 500,000 are really hot for investors as well as first-time buyers."
REA Group senior economist Eleanor Creagh says on paper, Mildura seems like a viable option for investors and owner occupiers seeking capital gain.
REA Group senior economist Eleanor Creagh.
"Vacancy rates in Mildura are low, and conditions remain tight, well below the healthy benchmark of 3%, which is sustaining rental yields and likely fuelling investor interest," she said.
"Mildura remains affordable relative to metropolitan areas. This combined with rental demand, airport connectivity and CBD revitalisation are likely all attractive to those chasing regional growth."
Houses in Mildura rent out for $490 per week with an annual rental yield of 5.2%, while units rent for $360 with a rental yield of 6.3%, according to PropTrack.
Choose scarcity
But while Mildura's numbers add up, no regional centre is worth investing in unless it boasts robust and sustainable employers and industries to maintain high local employment levels, says George Markoski, investment expert and founder of Positive Property.
"In a one-horse town, you're going to be in trouble. You want a regional city that's got multiple things going for it. Mildura's agriculture, renewables and tourism industries are long-term, so I would say it's a safe bet."
While the city's farms continue to attract large numbers of workers, new projects have also placed Mildura on the map. In 2023, renewable energy company RayGen opened a $27 million power plant project outside town, while the much-hyped Trentham Waters Resort, a luxurious Palm Springs-inspired hotel, is set to open over coming months.
The redevelopment of Mildura's riverfront is part of a plan to establish Mildura as Victoria’s most significant inland river city. Picture: realestate.com.au
But of course, working-from-home culture has to some extent, minimised the impact of local employers, adds Markoski.
"Ten years ago I would have said stay out of regional markets because they can be very boom and bust. But with remote work, people can live anywhere, which has really boosted regional areas."
However, one redeeming problem for regional markets is a potential oversupply of land available for development, which can drive property prices down, he says.
The key, as always, is choosing scarcity.
"The property you buy becomes even more important. Brand new apartments may offer tax deductions but new developments can be the first to lose their value if there's an oversupply and demand falls.
Custom Call to Action"The sweet spot is a brand new, boutique apartment (where you can still claim the tax deduction) or an established house in a tightly-held pocket.
"But there's a potential flooding risk in Mildura, so you have to do your due diligence," he added.
Meanwhile, Ms Rix is upbeat on the future of the town — and her business.
"With interest rates going down, I think that over the next two years, we're really going to continue to see a lot of growth happening here.
"We're remote and a long way from Bendigo or Melbourne, so we have to grow, really," she says.
"I love Mildura; I think it's the best place in Australia."
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