Bendigo faces $1.28 billion in new projects as housing supply tightens

Bendigo is scheduled to see construction begin on projects valued at $1.28 billion across 2026, according to the latest PRD Bendigo Market Update. The pipeline includes major infrastructure such as the South Energy Raywood Solar Farm, alongside smaller residential builds that together fall well short of recent sales volumes.

The timing matters because house sales in the final quarter of 2025 reached 412, a 14.1 percent rise on the same period a year earlier, while unit sales dropped to 79. With fewer properties coming onto the market and lower interest rates already supporting price growth, the new projects will take time to deliver completed homes, leaving buyers competing for existing stock in the meantime.

Specific residential sites listed in the update include 387 High Street and Haase Road for 55 units, 180-194 Retreat Road for 41 dwellings, and 46-48 Old Violet Street for eight townhouses. These additions sit alongside broader commercial, industrial and mixed-use work, yet the total new residential supply remains modest compared with the 412 houses sold in Q4 2025 alone.

Price and sales trends point to ongoing pressure

Median house prices reached $610,000 in Q4 2025, up 5.2 percent over twelve months, while unit prices climbed 8.0 percent to $475,000. Average vendor discounts narrowed to minus 2.4 percent for houses and minus 0.6 percent for units, showing sellers accepting offers closer to their initial asking prices. The update notes that the suburb of Bendigo itself has continued to record higher median prices than the surrounding local government area, a pattern that resumed after a brief dip in 2023.

Most houses sold last year fell in the $550,000 to $649,999 bracket, with 20.4 percent above $750,000. Units were concentrated between $400,000 and $499,999, though 20.5 percent cleared above $600,000. These figures suggest entry points remain available for first-home buyers even as premium segments expand.

Rental market stays competitive for investors

House rental yields stood at 3.9 percent in December 2025, above the Melbourne metro average, with median weekly rents at $460 after 5.7 percent annual growth. Vacancy rates held at 1.8 percent, below the Real Estate Institute of Australia healthy benchmark of 3.0 percent. Three-bedroom houses posted the strongest rental growth at 5.0 percent, reaching $420 a week.

The PRD update concludes that limited new stock and steady demand will likely keep upward pressure on prices in the short term. Prospective buyers are advised to move quickly on available properties rather than wait for the 2026 projects to reach completion.