Characterful Castlemaine

This past fortnight has been interesting for Australian property investors who have been keeping an eye on the news feed. Reports have come to light, showing that many of our nation’s regions are experiencing stronger than expected capital growth.

Typically, our regions have delivered stronger rental yields and moderated capital growth. Investors who prefer to focus on cashflow will often consider a region to target, but the historical performance is not translating into the current price growth or market indicators.

As shown above, (credit: Propertyology) internal migration is not a new thing. People have been adopting the tree-change and sea-change for some time now, but it is fair to say that COVID-19, (and all that we’ve accomplished and adapted to with our work-from-home arrangements) have exacerbated the desire for many to move to the regions for a fresh change.

While our major cities, (particularly Melbourne and Sydney) can be tracked by auction clearance rate data, the regions require other measures to be considered.

Days on market is a good indicator, as it showcases the overall supply and demand ratio well when it’s consistently tracked.

We’ve written articles about Ballarat and Geelong in the past, but a city that has taken us by surprise in Victoria is Castlemaine. Just 120km north west of Melbourne, supported by great rail links and often a favourite weekend destination for Melburnians, this special city is becoming home to many tree-changers.

Castlemaine’s days on market are tight, and while stock supply is also particularly tight, it’s fair to say that it has become a bit of a common conversation for us with tree-changers who are looking for a lifestyle change.

Castlemaine is a gold rush city that boasts so much more than its rich provincial nineteenth century architecture. Known today for its art scene, fine food, local wineries and annual jazz festival, it’s little surprise that this city captures peoples’ hearts.

A popular attraction is Castlemaine’s steam train ride to Malden.

Regular trips are enjoyed by visitors and local families alike, but Castlemaine finds its jazz groove in winter every year with the Jazz Festival. A regular ride on the team train becomes a 1920’s style first class carriage experience for the lucky revellers who manage to score the higher priced tickets. Other fun experiences are held for train-lovers, including “Murder on the Orient Express” nights, (it’s easy to see that I’m train enthusiast myself).

For the folks who are less excited by steam trains, there is still plenty on offer in Castlemaine, including;

• Botanical gardens,
• Theatre Royal – the oldest operating theatre in our country,
• Art Gallery, and
• nearby Mt Alexander for it’s alleged amazing mountain bike tracks

I’m told by a lovely local agent, Jeremy who migrated north west to this beautiful city after establishing his initial real estate career in Melbourne’s inner north, all of the great places for food, wine and coffee in town.

One of his favourite new restaurants is Wild, (situated within the old fire station). When COVID-19 struck, they offered fabulous Mexican takeaway to their local market, but according to Jeremy, one of their signature offerings is great cocktails. Run Rabbit Run is another popular haunt, situated in Hargreaves St and offering some high calibre dishes for patrons to enjoy in a beautiful, rustic setting.

Castlemaine’s coffee and cake offerings can’t be underestimated. Johnny Bakers in the Newnorthern Hotel put on a great pastry offering, while Das Kaffeehaus in the Mill precinct specialise in Viennese coffee amongst a superb array of other attractions.

If its property-lovers visiting this amazing city, a treat is what they’ll be in store for. From mid 1800’s colonial stone cottages to superb Victorian grandeur, history hasn’t let itself get lost in Castlemaine. Aspiring publicans could consider this incredible beauty, currently advertised on the market for $2.5M, while homeowners seeking a more modestly priced Victorian home could secure a gem in the north of town such as this home.

A tree-change isn’t for everyone, but for those who are considering some options within a two hour commute of our capital city, this intriguing and friendly town is a must-consider option.

As we say to all tree-change dreamers, “Try before you buy.”

A regional move is significant and requires careful thought and a bit of experimentation first. Whether aspiring buyers take out a six month lease or hire an AirBnB, we still apply caution to this strategy. Factoring in stamp duty, agents selling fees, moving costs and the disruption of a double-move is essential before jumping in to a new lifestyle.