As we conclude the first quarter of 2025, here’s an overview of the factors influencing the real estate market in central Victoria, encompassing the Macedon Ranges Shire, Hepburn Shire and Mt Alexander Shire.

Interest Rates and Market Impact

The Reserve Bank of Australia (RBA) implemented a 0.25% rate cut in February 2025, aiming to stimulate economic activity. This adjustment has positively influenced buyer sentiment and borrowing capacities. In Melbourne, for instance, property prices experienced a rebound in February, with median house prices increasing by $5,500 (0.68%) to $892,000, and units rising by $4,000 (0.63%) to $576,000. Despite this uptick, prices remain below the previous year’s figures, indicating a cautious but improving market.

In regional areas like the Macedon Ranges, the rate cut is expected to enhance affordability and attract more buyers seeking a tree change. However, the full impact may be tempered by broader economic conditions and upcoming political events.

Upcoming Election and Market Implications

With the Federal election scheduled in just over a month, buyers are exhibiting caution, leading to a tentative market environment. Historically, elections can introduce uncertainty in the property market, as potential policy changes may affect housing affordability, taxation and development regulations. While it’s challenging to predict the election outcome, staying informed about party platforms on housing and infrastructure is advisable for both buyers and sellers.

Shire-Level Planning and Zoning Updates

Macedon Shire

The Macedon Ranges Shire Council has recently aligned its Planning Policy Framework with state directives to simplify and enhance the clarity of planning schemes. These changes aim to streamline processes and provide consistency across Victoria.

Additionally, the council has introduced Amendment C126macr, involving zoning adjustments and ordinance changes to better reflect the region’s strategic planning objectives. For detailed information on specific property zones and schedules, stakeholders are encouraged to consult the Department of Transport and Planning’s Maps and Spatial Data resources.

Hepburn Shire

The Hepburn Shire Council adopted Planning Scheme Amendment C80hepb on 29 March 2021, which applies to all land in the Shire. This amendment was approved by the Minister for Planning on 23 November 2021 and sought to:

• Translate the Municipal Strategic Statement and Local Planning Policy Framework to the Planning Policy Framework.
• Implement the Hepburn Planning Scheme Review, February 2020.
• Incorporate recent reforms to the Victoria Planning Provisions and the Ministerial Direction on the Form and Content of Planning Schemes.

These changes aim to enhance the effectiveness and efficiency of the Hepburn Planning Scheme.

Mount Alexander Shire

The Mount Alexander Shire Council has been active in updating its planning scheme to reflect current needs and correct inconsistencies:

• Amendment C95: Part of the ‘Planning Policy Framework translation’ process, this amendment updates the Mount Alexander Planning Scheme to align with state directives.
• Amendment C99malx: Approved on 7 February 2025, this amendment corrects inconsistencies associated with the Heritage Overlay and Operational Provisions identified after implementing Amendment C97malx. It updates planning scheme maps for places in the Heritage Overlay and amends the Schedule to Clause 74.02 to remove references to completed rezonings.

Upcoming Events in the Region

Macedon Ranges Shire

Macedon Ranges Autumn Festival: Running throughout April, this month-long celebration encourages visitors to explore the region’s natural beauty and partake in various events, markets, workshops, exhibitions, and live music across nine charming villages. Highlights include:

• Food and Drink Trails Passport: Collect a Festival Map and Passport to navigate Australia’s biggest Pie & Tart Trail, the plant-based Edgy Veg Trail, or the Tipple Trail featuring local beverages.
• The Treasure Trail: Solve clues to discover secret pie recipes within picturesque picnic spots.
• Tipple Trail: Explore over 30 venues showcasing signature drinks from craft brewers, gin distillers, and winemakers.
• Australia’s Biggest Pie & Tart Trail: Indulge in a variety of pies and tarts from over 50 participating venues.
• The Edgy Veg Trail: Enjoy innovative plant-based dishes crafted by local cafes, pubs, and restaurants.
• Duneira Estate Autumn Open Garden Days: Experience the heritage-listed gardens of Duneira Estate on Mount Macedon during select dates in April. Stroll through vibrant autumn foliage and enjoy the serene landscape.
• Run the Rock: Participate in this annual fun run at Hanging Rock Reserve, offering various distances amidst scenic surroundings.
• Hanging Rock Craft and Food Market: Explore a variety of arts, crafts, and gourmet food stalls set against the iconic backdrop of Hanging Rock.

Hepburn Shire

• CresFest 2025: Scheduled from 4 to 6 April in Creswick, CresFest is an annual celebration of music and dance featuring performances by international and local artists, workshops, a busking competition, and family-friendly activities.
• Electric Guitar Making Courses: Starting on 5 April in Mount Franklin, Wildwood Instruments offers weekend retreats where participants can craft their own electric guitars.
• Introduction to Beekeeping: On 5 April, Dairy Flat Farm in Musk hosts an immersive beekeeping experience for those interested in hive care and management.
• Introduction to Sourdough Baking Class: Also at Dairy Flat Farm, this class on 6 April focuses on crafting slow-fermented sourdough baguettes and loaves.
• Ozact’s “A Midsummer Night’s Dream”: Experience Shakespeare’s classic play at the Hepburn Springs Mineral Springs Reserve Soundshell on 5 April.

Mount Alexander Shire

• Castlemaine Fringe Festival 2025: Running from 22 March to 6 April, this festival showcases local creatives through theatre, comedy, music, visual arts, and more across various venues.
• “198(4)” Performance: On 4 April, the Castlemaine Fringe Festival and Skin of Teeth Productions present a retelling of George Orwell’s classic at the Phee Broadway Theatre in Castlemaine.
• Maldon Market: Held on 13 April, this monthly farmers’ and makers’ market offers handmade products and produce from local artisans.
• Castlemaine Artists’ Market: Scheduled for 27 April at the Western Reserve, this market features handmade art, food, workshops, live music, and children’s activities.
• Castlemaine Coffee Cruises: On 20 April, motoring enthusiasts can gather for a cruise through the area, meeting at Castlemaine.

For a comprehensive list of events and updates, you can visit the official tourism websites of Macedon Ranges Shire, Hepburn Shire, and Mount Alexander Shire.

Recent Events and Market Activity

Notably, the Australia Day and Labour Day holidays did not generate the expected increase in tree change interest this year. Factors such as economic uncertainty and election apprehensions may have contributed to this subdued activity.

Melbourne Market Trends and Auction Clearance Rates

Melbourne’s auction market has shown resilience, with clearance rates hovering around 70% following the February rate cut. For the week ending March 30, 2025, Melbourne recorded a clearance rate of 66.9%, with 1,330 homes reported listed. This indicates a balanced market with cautious buyer engagement.

Insights from Financial Institutions

Recent analyses from financial institutions like Macquarie Bank suggest that declining interest rates reduce financing costs for landlords, supporting earnings and distribution growth. Lower rates also improve borrowing capacity, increasing residential and commercial real estate transactions and attracting fresh capital to the sector.

Furthermore, forecasts indicate that by early 2026, Australian households may need an annual income of approximately $180,732 to afford an average home if prices rise as projected. This underscores the importance of strategic financial planning for prospective buyers.

In summary, while recent interest rate reductions have provided some relief and stimulated market activity, factors such as the upcoming Federal election and broader economic conditions continue to influence buyer behaviour in central Victoria. Staying informed about local planning developments and participating in community events can offer valuable insights and opportunities in this evolving market.