Auction results highlight impact of new planning policies in Bendigo’s housing market

Bendigo’s residential auction clearance rates have shown noticeable shifts in recent months, with real estate agents and property analysts attributing changes to new local planning policies and council development decisions. The Real Estate Institute of Victoria (REIV) reports a 12% drop in auction clearance rates in Bendigo during June 2026, compared to the same period last year.

This trend arrives as residents and investors weigh the impact of the City of Greater Bendigo’s updated Development Contributions Plan, introduced in March 2026, which imposes higher levies on new housing developments, particularly in high-growth corridors like Flora Hill and Strathdale. At the same time, amendments to local zoning rules have limited infill development options, reducing housing supply in some suburbs favored by remote workers and young families.

Local planning shifts disrupt supply-and buyer confidence

Flora Hill’s popularity among both first-home buyers and Melbourne commuters has historically contributed to strong auction demand. However, planners’ recent restrictions on multi-dwelling developments along McIvor Highway have slowed approvals, with the Greater Bendigo Planning Team confirming a 25% decline in new dwelling permits in this area since the policy’s introduction.

Similarly, Strathdale, known for its proximity to Bendigo’s cultural precinct and established schools, faces tightened land subdivision rules aimed at preserving green space around Rosalind Park and the Bendigo Art Gallery. These measures have constrained fresh listings, coinciding with a noticeable easing in auction competition. Local agent Bendigo Property Group observed that the average number of bidders per auction dropped from six to four over the past two months in this suburb.

Market data confirms cooling but steady prices

Despite fewer successful auctions, median house prices remain resilient. CoreLogic data shows Bendigo’s median dwelling value held steady at $489,000 in June 2026, a marginal 0.5% increase compared to May. The persistence of demand is attributed to Bendigo’s growing profile as an arts and culture hub, plus expanded remote work flexibility drawing buyers seeking regional lifestyle options.

The City of Greater Bendigo’s updated Growth Strategy outlines a 5-year plan aiming to balance sustainable development with community needs, but experts warn the short-term effect may mean tighter markets and slower sales. Bendigo and District Housing Association notes that while entry-level buyers experience some price resilience, competition at auctions has lessened, offering new opportunities for cautious purchasers.

Looking ahead, buyers considering areas like Flora Hill and Strathdale should monitor council meetings and planning board announcements closely, as any relaxation or further restrictions could quickly influence market behaviour. Sellers may need to adjust pricing strategies amid increased selectivity from buyers.

With Bendigo’s auction landscape evolving alongside local policy, property professionals advise engaging experienced agents familiar with regulatory changes to navigate upcoming sales cycles effectively.

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.