Is Geelong the best place to buy a house?

Written by realestateview.com.au in Buying

Is Geelong the best place to buy a house?

Despite real estate prices in Melbourne showing signs of cooling (Melbourne dwelling values increased 8.9 per cent in 2017 but only increased 0.9 per cent over the three months to December), prices in these areas are still a major challenge for many first home buyers and investors alike. This has led towards a surge of investment in Geelong, driving demand and prices for homes in the bayside city. However, Geelong remains an affordable option for potential buyers, whether they be looking for houses or units for sale.

Whitford Property Director, John Moran, says that this surging interest in Geelong has been a long time coming.

“We represent value for money compared to the Melbourne real estate market, which has seen Melbourne-based buyers coming down the highway more and more. Geelong has been undervalued for what is on offer here; we are a beautiful city with a great lifestyle and are on the doorstep of the Bellarine Peninsula and surf coast,” he says.

What has caused this growth in interest?

“The number of business’s relocating to Geelong has seen those staff members relocate with them, which has also increased buyer demand. I predict another strong year for Geelong, there are no indicators to suggest otherwise.”

What may become more of a buyer’s market in Melbourne as prices plateau could be the opposite in Geelong, where competition should remain strong. This is an incentive to enter the market in the first half of 2018, while equally an incentive for sellers to wait for those in Melbourne to add to that surge in demand.

Below is a list of Geelong’s highest performing suburbs as far as the median sale price (MSP) of both houses and units is concerned.

Note the proportion of change in the MSP in 2017 compared to the three years as a whole. Houses in Corio have seen 28.1 per cent growth in three years, with 85.4 per cent of that growth occurring in 2017, while units in Corio have increased 22.9 per cent in three years, with 77.7 per cent of that growth occurring in 2017.

In Geelong West, the MSP of units increased 24.3 per cent over three years, but in 2017 only increased .4 per cent, indicating a slowdown in value growth for units this past year. A similar thing occurred in Highton, where there was a 23.1 per cent growth for the median sale price of units over three years, with this growth dropping off almost completely over 2017.

Suburb Houses: Median Sale Price change in 1 year Houses: Median Sale Price change in 3 years Units: Median Sale Price change in 1 year Units: Median Sale Price change in 3 years
Bell Park +9.7% = Avg. MSP of $395,000 +21.5% +2.8% = Avg. MSP of $343,000 +15.3%
Bell Post Hill +20.9% = Avg. MSP of $436,500 +30.9% +49.3% = Avg. MSP of $312,000 +56.0%
Belmont +18.4% = Avg. MSP of $491,500 +32.8% +9.1% = Avg. MSP of $360,000 +33.8%
Corio +24% = Avg. MSP of $310,000 +28.1% +17.8% = Avg. MSP of $258,000 +22.9%
East Geelong +15.1% = Avg. MSP of $596,250 +42% -19.6% = Avg. MSP of $345,000
Geelong +21.2% = Avg. MSP of $755,000 +47.6 -1.7% = Avg. MSP of $450,000 -10.9%
Geelong West +18.3% = Avg. MSP of $645,000 +37.2% +0.4% = Avg. MSP of $379,000 +24.3%
Grovedale +8.2% = Avg. MSP of $432,750 +20.4 +6.1% = Avg. MSP of $329,500 +21.6%
Hamlyn Heights +21.4% = Avg. MSP of $500,000 +38.3% +14.7% = Avg. MSP of $377,500 +52.1%
Highton +12.5% = Avg. MSP of $630,250 +21.2% +.1%% = Avg. MSP of $347,500 +23.1%
Manifold Heights +29.5% = Avg. MSP of $755,000 +59.5% +2.5% = Avg. MSP of $343,250 +33.3%
Marshall +5.0% = Avg. MSP of $417,500 +7.0% +1.6% = Avg. MSP of $310,000 +264.7%
Newcomb +21.4% = Avg. MSP of $376,250 +28.9% +18.2% = Avg. MSP of $295,500 +21.9%
Newtown +7.3% = Avg. MSP of $735,000 +21.0% -3.8% = Avg. MSP of $415,500 +26.5%
Norlane +22.9% = Avg. MSP of $290,000 +34.9% +13.0% = Avg. MSP of $271,250 +20.0%
North Shore +28.9% = Avg. MSP of $515,500 +24.4% -3.9% = Avg. MSP of $341,000 +11.1%
St Albans Park +14.8% = Avg. MSP of $379,000 +15.5% -0.8% = Avg. MSP of $258,000 +27.4%