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Geelong property market growth stronger than Melbourne
DEMAND for Geelong property is so hot that capital growth has outstripped Melbourne, new figures show.
The latest quarterly median house price data from the Real Estate Institute of Victoria confirmed capital growth was stronger in Geelong than across greater Melbourne this winter.
The REIV figures show the median house price in the City of Greater Geelong climbed 3.6 per cent to $492,000 in the three months to September. At the same time, capital growth in Melbourne was 0.7 per cent.
The data also revealed Geelong’s median house price has soared 12.5 per cent over the past year.
IT’S been a hot winter for Geelong’s property market with capital growth outstripping Melbourne, new figures show.
The latest quarterly median house price data from the Real Estate Institute of Victoria confirmed capital growth was stronger in Geelong than across greater Melbourne this winter.
The REIV figures show the median house price in City of Greater Geelong climbed 3.6 per cent to $492,000 in the three months to September.
The price climbed $17,000 from $475,000 in June. House prices have increased 12.5 per cent over 12 months, the data shows.
House prices were more subdued in the Surf Coast Shire, with a 1.2 per cent quarterly increase to $728,500.
At the same time, capital growth in Melbourne was measured at 0.7 per cent, the capital’s lowest quarterly amount in nearly two years.
Melbourne’s median house price is $817,000 — a $6000 increase from June, however capital growth is higher over 12 months at 14 per cent.
Manifold Heights was the hottest suburb, with the price of a house climbing 38 per cent over 12 months to $755,000.
More than 20 per cent annual price growth was recorded in Belmont, East Geelong, Geelong West and Hamlyn Heights and also in more affordable Bell Post Hill, Newcomb, Norlane and North Geelong.
Buxton, Newtown agent Ben Riddle said affordability would be Geelong’s key growth driver in the next decade.
Low interest rates and improved investment performance had lifted demand but kept a lid on supply, he said.
Stronger growth in cheaper suburbs, including St Albans Park and Corio, was a sign investors saw good prospects.
“You will find a lot of people are snapping up the cheaper stock and keeping it as rentals because the yields are very good and they provide a safe, solid return,” Mr Riddle said.
Gartland Property, Geelong agent Nathan Ashton said stronger interest in cheaper suburbs flowed on to the wider market where sellers were reinvesting in other pockets of Geelong, while white collar buyers boosted the top end of the market.
“Those buyers are anywhere from $700,000 to $1 million.
“There is strong bidding as well. You’re not having to justify value.”
The strongest lifestyle markets in the region were Lorne and Jan Juc, where buyers were finding more top-end homes with coastal views.
House prices climbed more than 20 per cent in the hot spots to $952,500 and $787,500 respectively to record the best growth on the Surf Coast, while Torquay recorded a solid 6.5 per cent increase to $728,000.
The REIV attributed Melbourne’s slowing growth to a lift in house sales in the sub$600,000 bracket.
Analysis shows many sellers put off listing their homes until first-home buyer concessions were increased from July, with sub-$600,000 sales claiming 44 per cent of the Melbourne market in the quarter.