New Planning Policies to Reshape Bendigo Property Prices in 2026

Bendigo’s property market is facing a potential shift as recent changes to local planning policies and state government development guidelines come into effect. The City of Greater Bendigo's updated Residential Growth Zone and revised subdivision requirements are expected to impact supply, particularly in popular suburbs like Flora Hill and Strathdale.

This matters now because Bendigo is balancing population growth pressures with sustainability and heritage protection goals. With the city continuing to attract both remote workers and Melbourne commuters, how planning decisions affect housing availability and affordability will be critical in 2026.

Local Policy Moves and Their Effects

In March, Greater Bendigo Council adopted an amendment to the Planning Scheme that increases minimum lot sizes in several residential growth areas, including parts of Flora Hill. The change aims to maintain neighbourhood character but also slows the rate of new dwellings coming to market. Meanwhile, the recently implemented Victorian Government “Growth Areas Infrastructure Contribution” policy requires developers in Strathdale and surrounding suburbs to contribute more towards roads and community facilities.

Bendigo's Housing Strategy 2025, managed by the City of Greater Bendigo, emphasizes concentrated development near transport hubs like the Kangaroo Flat train station and the Bendigo CBD. However, the new planning overlays restrict mid-density developments along these corridors, potentially limiting new stock that suits downsizers and younger buyers.

Data Points Highlight Market Sensitivity

The Real Estate Institute of Victoria (REIV) reported that Bendigo's median house price stood at approximately $490,000 as of June 2026. This reflects a modest 2.5% increase over the previous 12 months. However, Flora Hill, known for its proximity to La Trobe University, continues to attract strong demand with median prices around $540,000, supported by both student accommodation needs and family buyers.

In contrast, Strathdale has seen slower growth, with median prices near $460,000, partly due to increased developer charges affecting new estates. National property data aggregator CoreLogic notes a tightening of new listings in Bendigo’s inner suburbs since the policy changes were enacted in early 2026, which may put upward pressure on prices if demand remains steady.

Local agents in Bendigo report that buyers are increasingly prioritising homes within walking distance of amenities such as the Bendigo Botanic Gardens and Lansell Square Shopping Centre, but options are becoming limited under the current planning environment.

Looking Ahead: What Bendigo Buyers and Sellers Should Know

Experts advise prospective buyers to explore opportunities in emerging precincts on the city’s fringes where growth zone restrictions are less stringent. Areas like East Bendigo and Maiden Gully are experiencing more flexible development approvals, offering potential value growth as infrastructure improves.

For sellers in Flora Hill and Strathdale, maintaining realistic price expectations will be important given the moderating supply and incremental price rises seen so far. Engaging with local planners and staying informed on further amendments to Bendigo’s Residential Growth Zone can also give a clearer sense of future market direction.

With Bendigo’s property market closely tied to planning decisions and associated infrastructure investments, all stakeholders are keeping a close watch on how these policy changes influence affordability and community growth through 2026.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.