Direct the GPS to the green grass of regional Victoria – the single place where the price of houses is forecast to drop next year.
It is the only area forecast to experience property price reductions over the next financial year.
Country Victoria will buck the trend of record-high price spikes which are predicted to sweep other capital cities and regions, fresh data shows.
Buyers hoping for a beach house or provincial getaway may find prices more palatable over the next 12 months.
Prices in regional Victoria are estimated to decline between -0.3 per cent and 0 per cent – a flat-line line result – according to figures in Domain’s FY25 Price Forecast Report.
Capital cities and regional areas of the the other states are anticipated to tick over into record prices for houses and units.
House price forecasts by the end of FY25
| Location | Houses | Units |
| Australia | 3% to 6% | 2% to 4% |
| Combined capitals | 4% to 7% | 3% to 5% |
| Combined regionals | 2% to 3% | 1% to 3% |
| Sydney | 6% to 8% | 4% to 6% |
| Melbourne | 0% to 2% | 2% to 4% |
| Brisbane | 6% to 8% | 4% to 6% |
| Perth | 8% to 10% | 4% to 5% |
| Adelaide | 7% to 9% | 4% to 6% |
| Canberra | 0% to 4% | 1% to 4% |
| Regional NSW | 0% to 3% | 1% to 3% |
| Regional VIC | -3% to 0% | 1% to 2% |
| Regional QLD | 2% to 4% | 3% to 4% |
| Gold Coast | 3% to 6% | 3% to 4% |
| Sunshine Coast | 2% to 5% | 3% to 4% |
But not regional Victoria, which experienced supercharged growth on the back of COVID-induced tree and sea-changing and has been balancing out ever since.
It was not uncommon for buyers to pay well over the asking price for their coastal and farm addresses, seeking space for working for home and softer lockdown restrictions, amid ferocious and sometimes desperate competition for a limited pool of homes.
Conversely, apartments in regional Victoria could climb in price between 1 and 2 per cent, Domain’s analysis reveals.
Dr Nicola Powell, Domain’s chief of economics and research, said that although price rises are positive for those with their hard-earned money in Aussie bricks and mortar, it does enhance the barrier to entry.
“While the continued increase in property values is good news for Australians that own a home, we have to acknowledge that it’s becoming increasingly harder for many Australians trying to get into the property market,” she said in a statement in the report.
“We urgently need more supply to balance the market and make it more affordable for Australians to own a home. The government has made it clear that housing is a priority focus, but now we need to start seeing all levels of government and industry working together towards a solution.”
The forecast price spikes are rooted in a chronic, long-term undersupply, and factors driving demand.
“We predict that population growth, construction challenges, and borrowing power will be the key drivers behind the price growth,” Dr Powell said.
“Demand has risen as housing composition changes, demographic shifts, and robust population growth. We have seen an increase in single-person households and a decrease in household size in general (fewer people, on average, living in each household), both amplifying housing demand, further compounded by migration.”
Great homes for sale right now in regional Victoria
The landmark of Mount Eliza is about 110 years old had has been magnificently and sensitively preserved.
The Hamptons-style unit is a good-looking entry point in an always popular market.
A true country homestead, it stands handsomely at the foothill of the Strzelecki Range.