First-time commercial property buyers face new challenges in Bendigo market

First-time buyers looking to enter Bendigo’s commercial property market are encountering a landscape that requires careful navigation amid rising prices and shifting regulations.

Experts point to a combination of factors that have heightened the stakes for new entrants. Recent changes in lending policies and stronger competition from established investors have resulted in fewer affordable options, especially for small-scale commercial properties.

Why Bendigo’s commercial property market demands savvy buyers

The local economy’s growth, spurred by Bendigo’s expanding arts, culture, and technology sectors, has increased demand for commercial spaces. This can be seen in precincts such as View Street and Pall Mall, where multi-use developments and office spaces have attracted both startup enterprises and established businesses. The City of Greater Bendigo's Commercial Property Incentive Program, launched earlier this year in March, aims to support small business owners and investors with grants up to $15,000 to revamp or acquire commercial spaces, yet competition remains stiff.

Remote work trends have also altered demand patterns, with several co-working spaces filling up quickly in the CBD and adjacent suburbs like Flora Hill, traditionally known for residential properties. This has increased interest in smaller office suites and retail premises, pushing prices higher.

Data on current prices and what first-timers should expect

According to the Real Estate Institute of Victoria (REIV) June report, commercial property prices in Bendigo’s CBD rose by 7.3% over the past year, with median prices now around $750,000 for retail spaces and $520,000 for office suites. A three-bedroom mixed-use property on Hargreaves Street recently sold for $865,000, highlighting how prime locations come with a premium. Meanwhile, peripheral precincts like Kangaroo Flat still offer spaces averaging closer to $400,000, providing some relief for entry-level buyers.

Financing remains a major consideration. Bendigo Bank has reported increased inquiries for commercial loans, but with stricter lending criteria following recent regulatory reviews, loans under $500,000 require more detailed business plans and proof of income streams. Potential buyers are advised to work with financial advisors familiar with Bendigo’s peculiar property nuances.

First-time buyers should also factor in ongoing and upcoming infrastructure enhancements, such as the planned redevelopment of Bendigo Marketplace and the expansion of multimodal public transport options expected by late 2027, devices that could drive future property values.

Practical tips for entering Bendigo’s commercial property market

Industry advisors recommend that first-timers start by identifying precincts aligned with their business model and budget, such as working outside the high-cost CBD to places like Strathdale or Eaglehawk, where commercial properties can be more affordable. Engaging with local organisations such as the Bendigo Business Council or visiting the City of Greater Bendigo’s property investment office can provide tailored support.

Due diligence also includes scrutinising zoning regulations, potential tenant profiles, and long-term maintenance costs. Attending upcoming commercial property seminars hosted by REIV in Bendigo during August could be crucial. Additionally, collaborating with local real estate agents who specialize in commercial properties, like those from Hockingstuart and Hallmark Realty, can open doors to off-market opportunities not widely advertised.

Finally, first-time buyers should explore government incentives, including the Commercial Property Incentive Program and Small Business Digital Adaptation Program, which offer financial and mentorship support to lower acquisition risks.

While Bendigo's commercial property market presents challenges, thorough research and strategic planning can help first-time buyers secure a foothold in a city with strong economic prospects and a vibrant community atmosphere.

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.