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Ballarat Market Update 1st Half 2025

In Q4 2024, Ballarat* recorded a median house price of $510,000and a median unit price of $362,000.This represents an annual (Q4 2023- Q4 2024)softening of -8.6% for houses and -6.0% for units. Comparing Q4 2023and Q4 2024,total sales surged by 43.2%(to 613 sales in Q4 2024) for houses and 47.5%(to 146 sales in Q4 2024)for units, indicating a highly-demanded market. Despite this, economic conditions and higher interest rates have impacted the market. This creates a more affordable opportunity for buyers. With very little ready-to-sell stock planned and requiring time for construction, there is a possibility for a price recovery.

HOUSE SALES

FROM LAST HOUSE MEDIAN PRICE

HOUSE RENTAL PRICE

Ballarat£ will see approximately$63.2M ofnewprojectscommencingin2025

HALF YEAR

MEDIAN PRICE Q4 2024

$510K $362K

MEDIAN PRICE Q4 2024

AVERAGE DAYS ON MARKET Q4 2024

A key infrastructure project in Ballarat is Intermodal Freight Hub Terminal –BWEZ (Ballarat West Employment Zone). The terminal will include 3 rail sidings for 600m-long freight trains and a concrete hardstand for storing and loading of export containers. The $23.5million project is funded by the Victorian Government ($14.4M)and the Australian Government ($9.1M).

Combined with multiple commercial and industrial projects planned, this will attract more people tolive in the Ballarat area; which canincrease the demand for housing.

Key residential projects include:

• 46 King Street South (4 Units)

• 123Joseph Street Dwellings (numbers not disclosed)

Although there are a few new houses and units planned in 2025,this is still not enough to satisfy the market. This can assist in stimulating a housing market recovery sooner thanlater.

AVERAGE VENDOR DISCOUNT*

Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.

Average vendor discounts between Q4 2023and Q4 2024 have remained stable at -7.0% for houses but widened to -7.9% for units. The market still favourbuyers, as owners continue to accept below the first list price. The Ballarat* market saw a relatively stable discounting landscape in 2024, sitting atan average of -7.5%. This creates an ideal opportunity for first home buyers to enter the market,

The suburb of Ballarat has offered similar median house and unit pricing to the Ballarat Local Government Area (LGA) for the past five years. This continued in 2024, with both the suburb and LGA observing slower price growth.

The dominant proportion of homes sold in Ballarat* in 2024were in the middle price bracket between $450,000 – $549,999(27.4%). On the other hand, units recorded the highest proportion of sales in the most affordable price bracket of below $299,999(35.3%). Thatsaid premium homes also showed strong performance, with 25.7%of house sales above $650,000and 31.4% of unit sales above $450,000.This is beneficial forboth buyers and owners. Overall, Ballarat* offers a home forevery budget, making it anappealing market for a diverse range of buyers.

MARKET COMPARISON

The market comparison graph provides a comparative trend for median price of houses and units over the past 5 years. The main LGA chosen was based on their proximity to the main suburb analysed, which is Ballarat.

PRICE BREAKDOWN 2024

$450,000 to $549,999

to $649,999

Less than $299,999

$300,000 to $349,999

$350,000 to $399,999

$400,000 to $449,999

$450,000 and above

Ballarat (3350) House Ballarat LGA House Ballarat (3350) Unit Ballarat LGA Unit

RENTAL GROWTH 2025€

House rental yields in Ballarat¥ was 3.6% as of December 2024, slightly higher than Melbourne Metro (3.1%). This is paired with a stable median house rental price in the past 12months toQ4 2024,standing at $420per week. The number ofhoused rented decreased by -31.1% (to 31 houses), indicating an undersupplied house rental market. With a more affordable entry price compared with Melbourne Metro, Ballarat¥ is an attractive investment alternative

3+ bedroom houses have provided investors with +5.0% rental growth annually, achieving a median rent of $420per week.

Ballarat¥ recorded a vacancy rate of 1.6%in December 2024, below Ballarat LGA’s average of 2.2%and Melbourne Metro’s 2.2%. Vacancy rates have increased in the past 12months, due to a higher number of investors re-entering the rental market. However, a 1.6%vacancy rate is still well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting a tight rental demand and quicker occupancy of rental homes in Ballarat¥ This is a conducive environment for investors, especially with a more affordable house and unit price in Q4 2024.

RENTAL VACANCY RATES 2025

Ballarat (3350) Ballarat LGA Melbourne Metro REIA 'Healthy' Benchmark

Ballarat¥

PROJECT DEVELOPMENT MAP 2025 ₳

BALLARAT

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• Advisory and consultancy

• Market analysis including profiling and trends

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• Project analysis including product and pricing recommendations

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REFERENCES

* Ballarat sales market data and key indicators encapsulates aggregate property market conditions within the postcodes of 3350, 3355 & 3356.

** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.

# 2024 encapsulates sales transactions for the 2024 full year (01/01/2024 – 31/12/2024).

€ Annual rental growth is a comparison between Q4 2023 (01/10/2023 – 31/12/2023)and Q4 2024 (01/10/2024 – 31/12/2024) house median rent figures.

¥ Ballarat rental market data encapsulates aggregate property conditions within the postcode of 3550.

§ Rental yields shown are as reported as of December 2024.

₳ Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.

£ Projects refers to the top developments within the Ballarat Local Government Area.

µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.

ψ Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRD does not hold any liability to the exact date.

Source: APM Pricefinder, Cordell Connect database, SQM Research, Esri ArcGIS.

Disclaimer: PRD does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRD will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.