Not every regional property market needs to be positioned as the next boom town. Sometimes, the more credible investment case is built on comparatively affordable housing, an established employment base, constrained rental supply and yields that remain meaningful relative to the entry price. That is the case for Colac, Victoria. Get our report to learn more.

Located in south-west Victoria, approximately an hour from Geelong, Colac is an established regional service centre supported by agriculture, food manufacturing, healthcare, education and local government. It is better viewed as an income-oriented regional market than as a commuter suburb or speculative growth location.

Plug: Join our webinar next month for a practical overview of what Kenekt does and how we can support your business. RSVP today, and we’ll also send you links to our latest reports: https://insights.kenekt.app/new-agent-webinar-linkedin

An accessible entry point with a strong rental baseline
Colac continues to offer a comparatively accessible entry point for investors seeking detached housing. Gross rental yields are approximately 5.05% to 5.1%. The reported vacancy rate of approximately 0.59% also points to a tightly supplied rental market.

Over the past five years, the median house price has moved from approximately $410,000 in early 2021 to around $490,000–$505,000 by mid-2026. That represents cumulative growth of roughly 20%, or approximately 3.7% annually.

This is respectable, but it reinforces the point: Colac should not be marketed as a demonstrated high-growth market. Its stronger argument is the combination of affordability, rental demand and cash-flow potential.

Bulla’s continued investments
Bulla Dairy Foods has operated in Colac since 1922 and remains one of the town’s most important private employers.

Its new Greenfield manufacturing facility began production in late 2025 and officially opened in February 2026. The facility incorporates modern process technology, automation and robotics and is focused on frozen products for domestic and international markets.

At the project’s commencement, Bulla projected a workforce of approximately 900 employees across its Colac operations once the facility was completed. That number should be treated as a project forecast rather than a verified current headcount, but the investment remains significant. It demonstrates that a major employer has committed fresh capital to Colac rather than consolidating its operations elsewhere.

Get a full report on Colac: Join our webinar next month for a practical overview of what Kenekt does and how we can support your business. RSVP today, and we’ll also send you links to our latest reports: https://insights.kenekt.app/new-agent-webinar-linkedin

Property figures are indicative, vary between data providers and reporting periods, and should not replace independent financial, legal, valuation or property advice.