AN international housing survey has ranked Bendigo’s property market as the second most affordable in Australia.
As a result, industry experts have tipped strong local growth against an international property crisis.
Demographia’s fourth annual International Housing Affordability Survey ranked 227 cities  in Australia, New Zealand, Canada, Ireland, the United Kingdom and the United States on the price of housing against income.
It classed Australia and New Zealand as the most unaffordable countries in the world to buy a house, however that was with the backdrop of the sub prime crisis decimating the Canadian and US markets.
As a result, the top 50 most affordable cities were from those two countries.
In Australia, Maitland, near Newcastle, was rated as Australia’s most
affordable city.
Bendigo was a close second. Overall, the city was ranked as the 131st most affordable city in the world.
The report came as Bendigo’s median house price dropped in the December quarter of last year.
The Real Estate Institute of Victoria reported this week that Bendigo’s
median price fell .9 per cent from the September quarter to $228,000.
The drop was in contrast to Ballarat (two per cent to $233,500) and Geelong (5.1 per cent to $327,500), which each recorded increases over the same period.
Bendigo’s two leading real estate agencies believe the demographia ranking will be a benefit to the city and the local property market.
Keith Sutherland of Tweed Sutherland First National said Bendigo’s affordability would attract investors and those wanting to live in the city.
“Bendigo is affordable and because of that it is very attractive,” he said.
“The city should be able to reap the benefits of this.
“With all the benefits it has, Bendigo will start to boom.”
Mr Sutherland said the city had bucked the nationwide trend of soaring house prices in the past year.
“Bendigo’s prices have generally dropped five per cent in the past year, which doesn’t really make much sense,” he said.
“People I talk to all around Australia don’t believe me when I tell them that.
“I put the slight drop in prices down to the uncertainty of water and that we are sourcing from somewhere else.”
Mr Sutherland, who is also a director of Bendigo Publishing, publishers of the Weekly, said the city would benefit from being classed as affordable.
“This is a good thing. It will attract people here,” he said.
“I would expect Bendigo prices to go up at least five per cent in the next 12 months.”
Dungey Carter Ketterer sales manager Matt Bowles said the availability of affordable land in Bendigo had helped keep prices low.
“You can still buy a good block of land for under $100,000 and a build a good house for between $10,000 and $12,000 a square.
“That all means getting a good modern home for under $300,000.”
Mr Bowles said the amount of young families and professionals coming to Bendigo led to a stable market.
“The market tends to go along at a steady rate. It is a stable kind of town,” he said.
“People are starting to see the lifestyle choices Bendigo has to offer.
“That also makes it attractive for investors.”