A new report has revealed the median house price in Ballarat is set to increase by 8 per cent within the next three years.
Research released by QBE yesterday shows local house prices are expected to reach $425,000 by 2022.
This forecast is consistent with the trend seen in Ballarat over the past three years, sitting at an average growth rate of 7.8 per cent a year.
Phil White, CEO of QBE Lenders' Mortgage Insurance, says the growth rates for Ballarat homes are projected to increase slightly due to the city's proximity to Melbourne, despite the downturn in the state's capital.
"Demand is likely to continue to come from first home buyers from Melbourne taking advantage of the stamp duty concessions on offer. The local economy is also reasonably strong and tight vacancy rates are likely to support investor demand," he said.
“Although the downturn in Melbourne house prices is projected to influence Ballarat prices, we forecast the median house price to reach $425,000 by 2022.”