Our vote of confidence
GEELONG’S booming property market continues to set record prices across the suburbs, with new data also showing the number of homes sold at a loss is only 2.4 per cent.
This is the lowest in Geelong since November 2011, according to CoreLogic’s Pain and Gain report by senior research analyst Cameron Kusher for the June 2017 quarter.
In the report, Mr Kusher said coastal markets, particularly those linked to lifestyle, had generally experienced a significant decline in the proportion of resales at a loss over recent years.
“This is reflective of demand growing for coastal/lifestyle property and also reflective of reinvestment from Sydney and Melbourne homeowners that have accrued substantial equity in their properties,” he said.
“Value growth data indicates that many of the larger regional areas, particularly those located within close proximity to capital cities, are experiencing increases in values.”
Property values across Geelong are definitely increasing, as is the popularity of the area, according to local agents.
Buxton director Ben Riddle said Geelong had a pretty compelling story these days.
“A lot of the white-collar industry is coming to Geelong and that is bringing people down here, but the things we have always had, like the beaches and schools, are also bringing people here,” Mr Riddle said.
“People might move down for these reasons but the biggest factor we are seeing a lot of is people moving from Melbourne but they don’t go back.”
Mr Riddle said because property owners were staying in the area, there was a shortage of housing, which, when combined with low interest rates, meant people were fighting for the same stock.
“There is a healthy number of people per property and obviously the competitive scenario is what is driving prices up,” he said.
Mr Riddle was surprised that 2.4 per cent of Geelong properties were reselling at a loss. He suggested they might be one-off scenarios or the result of a quick purchase and having to sell again soon after.
A Grovedale property that sold for $361,500 in March last year has recently sold again for a much higher price, according to CoreLogic.
Data shows the asking price GEELONG’S BIGGEST PROPERTY GUIDE, INSIDE TODAY of 13 Burke Court, Grovedale, was $458,000.
It sold for an undisclosed figure close to that, Maxwell Collins agent Duncan Skene said.
“The vendors did a little bit of work to it to spruce it up but nothing major,” Mr Skene said.
“A lot of properties are selling for a profit ... going back a few years ago there were properties that sold and then they couldn’t get the same price a couple of years later, but that’s not happening now.”
Grovedale is the fastestselling suburb in Geelong, along with Waurn Ponds, according to CoreLogic’s Top Suburbs report, with an average 33 days on the market.