Sherridon Homes, part of Victoria’s largest home building group, Mirrastone (formerly AHB Group), has seen sales activity in Ballarat double over the past 12 months, as affordability pressures, rental demand and continued regional investment reshape buyer activity across Victoria.
The builder said Ballarat had emerged as one of Victoria’s strongest-performing regional markets, with growing demand from both investors and owner-occupiers seeking greater value and long-term growth potential outside Melbourne.
Recent Cotality data shows Ballarat dwelling values increased 12.7 per cent annually, significantly ahead of Greater Melbourne’s 5.36 per cent growth over the same period, while the region’s vacancy rate has tightened to just 0.9 per cent.
Sherridon Homes General Manager Western Victoria Region, Ryan Pridham, said the market had evolved well beyond its traditional affordability narrative.
“Ballarat is increasingly being viewed as a genuine long-term growth market, not just a more affordable alternative to Melbourne,” he said.
“We’re seeing buyers drawn to the region for a combination of factors – established schools, improving lifestyle amenity, healthcare investment, employment growth and the ability to access housing outcomes that are becoming harder to achieve in metropolitan areas.”
Key growth corridors including Bonshaw and Winter Valley have continued seeing strong enquiry from both investors and owner-occupiers, particularly for house and land opportunities within established communities.
Investor demand has remained particularly strong, accounting for around 65 per cent of Sherridon Homes’ Ballarat sales this year. According to the business, buyers are increasingly favouring low-maintenance, investment-oriented products including three-bedroom homes, Dual Key configurations and affordable house-and-land solutions such as the Essence range.
Ballarat’s undersupplied rental market has also continued supporting investor demand, with the region recording a vacancy rate of just 0.9 per cent at the beginning of this financial year, contributing to stronger rental competition and ongoing pressure on housing supply.
The region’s growing infrastructure pipeline is also contributing to housing demand, particularly the $655 million Ballarat Base Hospital redevelopment, which is expected to create more than 1,400 construction jobs and up to 1,000 ongoing healthcare roles upon completion.
Recent investment into projects such as the $23 million redevelopment of Bridge Mall has also contributed to stronger activity across Ballarat’s retail and hospitality sector. At the same time, the wider mid-west Victoria region recently attracted more than four million visitors, generating visitor spend of over $1 billion.
“The market is also becoming more diverse,” Ryan said.
“There’s growing demand across family homes, medium-density housing, knockdown rebuild opportunities and investor-focused products, which is changing the way builders need to think about regional delivery.”
James, who recently purchased with Sherridon Homes in Ballarat, said the region offered a level of value and long-term potential that was increasingly difficult to find elsewhere.
“Ballarat made sense both financially and long-term. There’s strong infrastructure investment happening, the market still offers relative value compared to Melbourne, and it feels like a region with genuine long-term growth ahead,” he said.
Sherridon Homes has continued expanding its regional presence, including investment into its Ballarat Gallerie Studio, which allows customers to complete their design selections locally, alongside a growing display home network across the region.
The builder said its focus remained on delivering housing solutions that reflected how regional markets were evolving, particularly as population growth, infrastructure investment and changing buyer priorities continued reshaping demand across Victoria.
To learn more about Sherridon Homes, please visit www.sherridonhomes.com.au.
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