Vic regionals in downturn? Panic or persist

Hey PC team!

Im young and somewhat blasé to the downturns or slower periods, so please forgive me. But I'm curious with the market slowing, whats likely to happen in regional areas?

Areas within 4 hours of Melbs, 250k-400k (3 bed traditional houses?)

Properties sit on the market for longer (average days on market increases)?
Properties don't sell?
Properties don't come on the market as much?
Rental Yields increase as developers slow up?
Micro markets (street by street) selections become more important

What can I expect?

Any feedback would be greatly appreciated

Thanks

 

Generally with Victoria you have the major regional centres, Geelong, Ballarat, Bendigo and probably Albury/Wodonga, the first three are arguably within a workable commuting time to Melbourne. Although being reasonably large cities the first three are self-sustaining cities in themselves,but will probably mirror any reaction melbourne may get/have if there's a downturn.

I will say that in the 90's, property prices in Geelong flatlined for a long time, and i am to this day regretful to not think to buy my place when a house in Norlane could be got for about $40K in 1998 after the Asian financial crisis. Since then of course with Melbourne booming, and with a large expanding population, the large regional cities are increasing due to being more affordable. Also, these three cities have period housing in inner areas, just like Melbourne, so if someone really wants a Victorian, Edwardian, or even a terrace house, they can get one in such a town for a lot less than an inner city melbourne place where almost all would be situated.

But regional prices drop considerably as you move in distance from the larger towns. You get to a point where you really aren't a reasonable commute to Melbourne, and job-wise you are probably going to have more difficulty finding one especially if you start moving more than 40-50K's from a large regional city. Other ones in Victoria that offer housing in the $200k range would be Warrnambool, Seymour, Horsham, Traralgon and Shepparton, these are the second tier regional places that at least tend to be the magnets for drawing people from around the rural townships, where house prices can be got for under $100K.

But in those rural areas you are a long way from any major town, and getting to Melbourne is more a day trip than a commute. Yields are quite good though for some of those cheaper places, it's just that repairs etc will cost a bit, as they are often older houses, and tradies are thin on the ground and very expensive to find.

 

@Dave3214 Thanks Kindly for such a great insight.

Would you say property in these areas generally slows down?
e.g. Less market movement, less properties hitting the market (and less demand) But for the most part, once developers clear land stock from this up cycle and growth phase the average days on market don't change so much?