Once the heart of Australia’s gold rush, Ballarat is now forging a new identity, this time as one of Victoria’s most promising regional commercial property markets. While its historic streets still echo the prosperity of the 1850s, today’s growth is driven by a diversified economy rooted in manufacturing, education, healthcare, and logistics.
Ballarat is rapidly establishing itself as one of Victoria’s most promising regional commercial property markets. With a diversified economy rooted in manufacturing, education, healthcare, and logistics, Ballarat continues to attract sustained investor interest and development activity.
The region’s Gross Regional Product (GRP) has demonstrated steady growth, reaching approximately $6 billion in the year ending June 2024, according to the latest data from economy.id.
This represents a growth rate of 3.8% year-on-year, reflecting Ballarat’s expanding economic footprint, which now accounts for about 1.1% of Victoria’s Gross State Product.
Significant infrastructure investment underpins this growth. The 2024/2025 Ballarat City Council budget allocates over $80 million to capital projects, including transport upgrades, urban renewal initiatives, and community facilities.
These investments not only enhance Ballarat’s liveability but also bolster its commercial property fundamentals by improving accessibility and supporting business expansion.
Population growth remains a key driver, with Ballarat continuing to experience above-average increases compared to other regional centres. This demographic trend fuels demand for retail, office, healthcare, and industrial space, supported by the city’s strategic location on the Melbourne–Ballarat corridor and strong transport links.
Investor confidence is highlighted by recent commercial sales facilitated by CBRE, which underscore Ballarat’s market strength.
The sale of the fully leased Ballarat Health Hub on Sturt Street, anchored by major healthcare tenants, attracted competitive bidding from institutional and private investors alike.
Recent CBRE sales in Ballarat have demonstrated attractive yields for investors, with healthcare and industrial assets consistently delivering between 5.5% and 6.5%. For example, the fully leased Mercy Health facility on Humffray Street North traded on a solid yield of around 6%, while the St John of God Hospital Network Support Centre in Wendouree secured long-term leases reflecting strong income stability.
Other notable transactions include commercial office and retail spaces near Ballarat’s Central Business District, where yields typically range
from 5% to 6%, underpinned by reliable tenant covenants and steady rental growth driven by the region’s expanding economy. Industrial property has also seen robust activity. The sale of a high-clearance warehouse facility on Mair Street achieved a yield of 6.1%, reflecting solid demand for quality logistics and distribution assets in the region. Meanwhile, investors continue to secure prime land parcels, anticipating the ongoing expansion of residential precincts and commercial zones on Ballarat’s outskirts.
As Ballarat’s economy broadens and infrastructure projects come to fruition, the city is positioned to consolidate its status as a major regional commercial hub. With competitive pricing, strong tenant covenants, and long-term growth prospects, Ballarat offers an attractive opportunity for investors seeking exposure to a dynamic and resilient market.
P178 Edition | Portfolio Magazine