Northern and North East Victoria’s real estate market is making waves, with its scenic tourist towns leading the state in median house price growth. These locations, surrounded by rivers, mountains, and lush landscapes, are becoming the pinnacle of desirable property, offering both natural beauty and vibrant, tight-knit communities. Meanwhile, the once-coveted coastal markets—particularly the high-end properties in towns like Flinders, Lorne, and Anglesea—are feeling the strain of post-COVID surges, higher interest rates, and mounting living costs.

Yarrawonga: A Blend of Tourism, Agriculture, and Community

In Yarrawonga, the median house price now sits at $634,000, showing a solid 3.89% growth over the last 12 months. With median rents reaching $500 per week and a gross rental yield of 4.1%, this town thrives with a healthy blend of tourism, agriculture, and community-based industry. Along the banks of Lake Mulwala, Yarrawonga’s abundant parks, local cafes, and robust community events give it a unique appeal. Investors and residents alike are drawn by its strong work-life balance and steady lifestyle offerings.

65 Brears Road, Yarrawonga
Lifestyle on the Murray, 65 Brears Road, Yarrawonga is currently listed by Arron Robinson of Murray Valley Real Estate.

Beechworth: Historical Charm Meets Modern Growth

Beechworth has also seen remarkable growth, with a median sale price of $821,000—a significant 14.19% increase in the past year. This town is a captivating mix of historical charm and modern amenities, where median rent sits around $490 per week with a gross rental yield of 3.1%. Known for its preserved Victorian architecture and boutique shops, Beechworth is close enough to larger centers like Wangaratta and Wodonga to attract commuters. It’s a community where life thrives with art, history, and a rich food culture. Visitors and residents find equal joy in its renowned vignerons and picturesque natural attractions, like The Gorge Walk and Lake Sambell.

Wangaratta and Mansfield: Affordable Living with Lifestyle Perks

The Northern Victorian towns of Wangaratta and Mansfield are also showing resilience. In Wangaratta, the median sale price is currently $525,000, up by 5% over the last year, while rental yields remain strong, with a median rent of $450 per week and a yield of 4.5%. Just a short drive away, Mansfield holds a median house price of $810,000 with a modest growth rate of 3.05%, and rents averaging $540 per week, generating a 3.5% yield. These towns offer affordable living, good schools, and access to national parks, skiing, and wineries, making them hotspots for families seeking a balance of affordability and lifestyle.

Lake Sambell, Beechworth
Visitors and residents find equal joy in Beechworth’s picturesque natural attractions, like The Gorge Walk and Lake Sambell.

Echuca: A Riverfront Haven with High Rental Yields

The charming town of Echuca along the Murray River is experiencing a resurgence as well, with a median sale price of $578,000 and a growth rate of 5.34%. Rental income averages around $580 per week, with an attractive gross yield of 5.2%. Surrounded by wineries, riverfront parks, and historical attractions, Echuca delivers the perfect blend of small-town tranquility and weekend adventures. Its reputation for tourism, combined with steady employment options, continues to support its robust property market.

Bright: A Vibrant Tourist Hub Despite Market Corrections

One of North East Victoria’s most beloved tourist towns, Bright offers an appealing lifestyle near Mt. Hotham. While median house prices recently dropped slightly to $1.1 million, down 3.39%, it remains an attractive location for long-term investment. Bright’s vibrant community offers fine dining, wineries, and thrilling outdoor pursuits, from mountain biking to river activities. Its modest price dip represents a market correction, providing a great entry point for those captivated by Bright’s lifestyle and beautiful surroundings.

Bright Victoria
Bright Victoria’s recent market correction provides a great entry point for those captivated by Bright’s lifestyle and beautiful surroundings.

Coastal Market Challenges: High-End Retreats Face Declines

On the other hand, some once-prized coastal regions have seen significant downturns. Flinders, for example, where the median house price is $2.4 million, has witnessed a stark 27.66% drop in value over the past year. With median rents at $925 per week and a gross rental yield of just 2.0%, Flinders highlights the impact of financial strain on high-end holiday markets. The cooling trend extends to Lorne and Anglesea, where median house prices sit at $2 million and $1.5 million, respectively, reflecting price decreases of 4.76% and 15.12%.

Bundalong: Affordable Options for Murray River Living

While some smaller holiday towns are also feeling the pinch, they offer unique opportunities for buyers seeking peaceful escapes. Bundalong, a small waterside town focused on boating and water sports, currently has a median sale price of $780,000—a decrease of 27.68%. Although rental yields stand at a moderate 3.1%, Bundalong’s proximity to Yarrawonga and its tranquil setting make it an affordable option for those looking to invest in the Murray River lifestyle without the bustling growth of nearby Yarrawonga.

65 Brears Road, Yarrawonga
Opportunity awaits: 65 Brears Road, Yarrawonga is currently listed by Arron Robinson of Murray Valley Real Estate.

A Seasonal Opportunity for Buyers

As the housing market moves into summer 2024, a seasonal buying window is opening for potential investors in North East Victoria. While interest rates are expected to hold until May 2025, investment potential coupled with market corrections in key areas presents a favourable opportunity for those considering a “tree change.”

Here at Regional Homes Australia, we see more than market numbers; we see vibrant communities offering stability, natural beauty, and an enviable lifestyle. Whether it’s Beechworth’s historic streets, Yarrawonga’s family-oriented appeal, or the adventure-rich surroundings of Bright, the region promises a wealth of options for those ready to embrace a fresh start.

Hero image: Bundalong, Victoria, photo by Arron Robinson/Murray Valley Real Estate
Data within this article has been sourced from CoreLogic’s superb report, 12 months to October 2024

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