What is the best town to live in Victoria?

17 Washington Lane sold recently sold in Woodend – Victoria’s top regional town for first-home buyers.

Victoria has dominated a list of Australia’s best regional towns for first-home buyers, as more Aussies set their sights on a country lifestyle after lockdown.

ME Bank has revealed its top picks for buyers taking their first step on the property ladder, with Victoria taking out eight of the 20 top towns — more than any other state.

Woodend in the Macedon Ranges was named number one for Victoria – and ranked sixth nationally – with a median house price of $807,500.

RELATED: Melbourne suburbs first-home buyers should consider in 2021: experts

Melbourne lockdown lifting: Regional Victoria to be open to Melburnians, inspection rules relaxed

Buyer demand rising for new land ready in 12 months

Woodend is also home to some established acreage properties, like 4C Mahoneys Road.

2 Riverview Crescent, Wangaratta, sold last year for $440,000.

Other more affordable regional spots with a median house price of less than $500,000 were Tatura, Kilmore and Wangaratta.

National planning and urban economics firm Ethos Urban conducted the research after an ME survey found two-thirds of first-home buyers were more likely to consider buying in a regional area due to COVID-19, to save money and improve their lifestyle.

Internet quality, health and education facilities, the town’s character and vibrancy, population growth, employment rate and proximity to a major population centre were all considered in determining the data.

Housing affordability was another major factor.

These qualities helped picture-perfect towns like Beechworth, Castlemaine, Mansfield and Port Fairy also land a spot on the list.

332 Badhams Road, Port Fairy, sold for $580,000 in September.

First-home buyers Matthew Irons and Kate Scarlett made the leap from North Melbourne for a regional lifestyle earlier this year.

The pair considered Woodend before settling on nearby Macedon for its community atmosphere and public transport.

“We’d been wanting to get out of the city but we weren’t ready to go full rural,” Mr Irons said.

“There’s a local pub with live gigs and, of all the train lines, this had the best access to the city for work.”

Matt Irons and Kate Scarlett with their 11 year old Border Collie, Sim, outside their Macedon home. Picture: Jay Town

Jellis Craig Macedon Ranges’ Terry Gibson said Woodend and Castlemaine’s pricing and access to the CBD made them attractive to young buyers.

“More so in Castlemaine, because it is a little more affordable but there’s some strong activity in the new subdivisions in Woodend,” Mr Gibson said.

“The reality is that they can get a decent house on decent size block compared to something they might not be able to afford in Melbourne.”

Castlemaine has a $532,500 median house price, according to realestate.com.au.

19 Urquhart Street, Castlemaine, sold for $553,000 just after lockdown in November.

He said low interest rates, first-home buyers grants and government stimulus had helped encourage some buyers to make the leap from renting to buying.

“When you consider borrowing costs at the moment … I think people are realising it’s almost cheaper to buy,” he added.

“A lot of people are really thinking about their lifestyle and making that tree change.”

First National Real Estate Bonnici & Associates’ Tony Stockdale agreed, noting that grants had also contributed to a number of land sales in the tightly held Beechworth area, where the median house price is $500,000.

3 High Street, Beechworth, also sold recently for $600,000.

ME’s consulting demographer Chris McNeill said it was “no surprise” that Victoria was a top performer.

“So many Victorian towns are within striking distance of Melbourne, or a major regional city, which gives first-home buyers in these areas great job flexibility and access to amenities,” Mr McNeill said.

“They also boast amazing bush and beach lifestyles, without the crazy New South Wales prices.”

Towns that were determined too small, too big or with demographics less suited to first-home buyers were excluded from the data that ranked 83 towns against the criteria.

READ MORE: Boost Juice scion Riley Allis lists Glen Iris house after 18 months

Chris Christofi: From Cyprus scratchies to property empire

Ryan Seacrest is selling his Beverly Hills mansion for $115.5 million

TOP 20 REGIONAL TOWNS FOR FIRST-HOME BUYERS

1. Nairne, South Australia.

2. Bungendore, New South Wales.

3. Margaret River, Western Australia.

4. Mount Barker, South Australia.

5. Kiama, New South Wales.

6. Woodend, Victoria.

7. Beechworth, Victoria.

8. Dunsborough, Western Australia.