Key takeaway: Investors are moving back into Victoria because regional markets like Ballarat still offer value after Perth and regional Queensland ran hard. Lachlan O’Connell, buyers agent and owner of O’Connell Buyers Advocate, says three-bedroom houses in good regional suburbs that cost under $500,000 in early 2025 now sell for $600,000 or more, driven largely by local owner-occupier demand.
In this episode of Geared for Growth, Mike Mortlock is joined by Lachlan O’Connell, buyers agent and owner of O’Connell Buyers Advocate.
Victoria hasn’t exactly been the investor darling in recent years. With rising land taxes, tighter regulations, and stronger performance elsewhere, many wrote it off entirely. But beneath the surface, something very different has been unfolding.
Lachlan brings a boots-on-the-ground perspective from Ballarat – where demand is rising, competition is heating up, and the definition of a “good deal” has shifted dramatically in just 12 months.
This conversation breaks down why some investors are getting it right… while others are unknowingly buying into the wrong pockets, chasing short-term gains at the expense of long-term growth.
It’s a timely reminder that in property, not all growth is created equal – and understanding where to buy matters more than ever.
It’s still achievable, Lachlan says, but usually not as a freestanding house. What were $500,000 houses in early 2025 have moved into the $600,000 bracket and beyond. Investors on lower budgets can still find value by changing asset type, for example a three-bedroom unit on decent land with a better yield in a better location. Those who can stretch to $600,000 to $650,000 will find some great properties.
Lachlan says a single suburb can contain three or four distinct markets. In Wendouree, he would avoid one pocket near Wendouree West, while south of Norman Street, close to the lake and CBD, is the sweet spot. Interstate investors buying in cheaper pockets, where houses have gone from $350,000 to $400,000 up to around $500,000, can push a suburb’s median up and skew the data.
Lachlan says the main difference is price point. A $600,000 house in Ballarat North or Wendouree might rent for $450 a week, while an equivalent house in a better pocket of Belmont or Highton in Geelong could cost $750,000 to $800,000 and rent for about $500. Ballarat suits investors who need yield on a lower budget, while Geelong suits those with $750,000 to $800,000 or more.
Lachlan sees good short-term opportunity while some buyers sit on the sidelines because of global uncertainty and negative media, and he expects a strong second wind once confidence returns. He says the time to move is when you have strong buffers and serviceability, including roughly a six-month buffer, and you have worked out your worst-case scenario and know you would be okay.
This is general information from the podcast, not financial advice.
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