Surge in interest for rural-residential properties across Corangamite Shire

The growing interest has seen one south-west council this week request Victoria's planning minister change its planning scheme to keep up with the demand.

Corangamite Shire Council's proposed rural living strategy will see 215 hectares of farmland across nine townships rezoned to make way for larger lifestyle blocks.

Land in Camperdown, Terang, Timboon, Port Campbell, Lismore, Cobden, Simpson, Noorat and Skipton will be rezoned under the amendment.

It aims to provide more living options across the shire, mayor Ruth Gstrein said.

READ MORE: Farmland chopped in hopes to draw in 'tree-change' lifestyle seekers

"It's looking at available rural-residential land around the townships because we appreciate not everybody wants to live in the middle of town on a small block," Cr Gstrein said.

"Some people do want to have a bit of land around them, for example young families or retired farmers who have come off farms but are not ready for suburban living.

"What we are seeing now is a surge of interest from metropolitan Melbourne and regional cities looking at regional Victoria.

"They want to experience the land around them."

Alistair Tune from Ray White Camperdown said the majority of interest in properties around 10 acres was from metropolitan residents looking to get out to regional areas.

He said a lot of that interest had been driven by the COVID-19 pandemic which had caused a cultural shift in perceptions of city living due to flexible working arrangements.

"It's a big driver for the regional market at the moment, people want a bit of extra space around themselves," Mr Tune said.

Even in the last week since the sixth lockdown, and regional Victoria's early release from harsh restrictions there's been a spike in prospective Melbourne buyers inspecting properties via video - around 70 per cent of all interested clients.

Recently a 180-acre property at Pomborneit sold to a Melbourne buyer to be used for a weekend getaway.

"Those smaller parcels 100 acres or less are almost classed as a lifestyle property these days which drives the price up," Mr Tune said.

Charles Stewart Real Estate Camperdown agent Brian Rowbottom said in some cases young people were getting priced out of their first homes.

"There is interest from the younger ones but the out-of-towners push the prices right up," he said. "I feel sorry for young locals trying to get into the real estate game.

"If you wanted to sell now you would make considerably more than 12 months ago but for the young ones it's hard to get into the market and then they sometimes move away as a result."

He said the high cost of connecting sewage on small rural blocks could be a barrier to development.

But Corangamite Shire has developed a domestic wastewater grant - the only council in the state - providing a financial incentive for the development of new housing on lots in township areas not serviced by a reticulated sewage system.

Cr Nick Cole cited one family which abandoned plans to build due to the high price of installing a septic system.

"If we can make it easier to get people here to build the houses, the better," he said.

Corangamite Shire is facing a rental crisis.

In Camperdown the current rental vacancy is 0.12 per cent.

Only two rental properties are available for a population of more than 3300 with 20 per cent of the town's population renting.

The average house costs $300 to rent in the shire.

In the broader Corangamite Shire the rental vacancy rate is 0.25 per cent and only 21 properties are available. Eighteen per cent of the shire's population is renting.

Housing stock variance has dropped more than 41 per cent so far this year compared with last year.

"There's a big shortage, we get a dozen applications or more for each property, it doesn't matter where it is, it gets filled," Mr Tune said.

Ray White sales to purchasers from outside the shire rose to 68 per cent in the 2020-2021 financial year, up from 55 per cent the year before.

A new multi-million housing estate planned for Timboon looks to address the low housing stock and tight rental market in Corangamite Shire.

A proposal for a 10-lot subdivision on Neal Street, along the western edge of Timboon, is pending approval from the shire Council.

Director of Timboon Developments Glenn McNeil is behind the development and looks to build 10 townhouses ranging from three and four bedrooms.

He's already been inundated with inquiries from locals and out-of-towners interested in buying.

"We're local people, my wife grew up in the town and we did our first development in Timboon 40-odd years ago," Mr McNeil said.

"A lot of the blocks along Neal Street we originally developed.

"There's a lot of people sitting on their hands in Timboon on land that could be developed, the time is right. The town does need a residential land release."

The proposal is the first stage of a wider plan for the town.

"We still have another seven or eight acres along Neal Street to develop.

"I want to get going straight away as soon as the council sign off on it.

"It's residential land, we're doing residential activity so we don't expect there will be a problem."

Selling agent Peter Worden, director of Nutrien Harcourts, said it would be something new for Timboon.

"It shows what direction the town is heading," he said.

"It's only in the planning process and we've had lot of interest from local people as well as from out of town as well which is very positive.

"This same developer has got another approximately 120-odd residential blocks to come up on the market over a period of time.

"It just shows growth and strength and confidence in the market."

Of inquiries in the shire more generally Mr Worden said 60 per cent were from Melbourne and the Surf Coast.

Over three years the trend has shifted from Melbourne buyers purchasing investment properties to owner-occupier sales.

"There's now a real shift where people are selling up and getting great prices on their own properties and relocating.

"There's that affordability - you can buy and settle down on a nice bit of land with a big house just 10 minutes from the Great Ocean Road for what is pocket change compared to somewhere like Ocean Grove."

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