House prices in Victoria's regions rose 6.7 per cent over the past year, even as the Melbourne market slowed after interest rate rises. Glenelg recorded the biggest jump, with prices climbing more than a quarter in 12 months. Agents in Portland and Ararat say interstate investors are driving demand, while limited listings push prices up. Mansfield was one of the few areas where the median house price fell, dropping by more than $75,000 in the September quarter. Experts say regional areas are attracting buyers through relative affordability and more job options.
Changes to negative gearing and capital gains tax will reshape property investment, with the biggest effects felt beyond landlords. From 1 July 2027, negative gearing for residential property will apply only to eligible new builds. Investors buying established properties after the 2026 Budget announcement will not be able to offset losses against other income, though existing investments are protected. Writers argue the reforms could channel more capital into new housing, which would benefit local businesses in western Sydney, but only if planning and infrastructure keep pace.
