Property prices rise

Geelong market springs into action

AN influx of cashed-up buyers has kickstarted Geelong’s property market, a CoreLogic researcher said.

Geelong’s house values fell 4.7 per cent over 12 months to June, according to the CoreLogic Quarterly Market Update, but more recent data shows prices have risen since.

CoreLogic research analyst Cameron Kusher said the recovery in Melbourne, where prices jumped 2 per cent in three months, had flowed to Geelong’s property market in the past three months.

“It’s been a pretty sharp downturn in the past year in houses and units to June, but we have got more up-to-date data and in the past couple of months we have seen a slight increase in the Geelong market,” Mr Kusher said.

“And what we have seen is the recovery has started in Melbourne and is stretching out to nearby areas like Geelong.

“It is still pretty subtle increases but it’s something to keep an eye on, for sure.”

The first flush of new properties listed for post-grand final auctions has hit the market, which will test how far the recovery has moved.

“In spring you obviously see more stock come to the market, and there is evidence that is happening, but you also find that lenders have pretty competitive rates on mortgages so that tends to bring a few buyers out of the woodwork as well,” Mr Kusher said.

“I think we’ll continue to see values rise through spring. I guess the thing that could sidetrack that is if the pool of buyers is not as deep as we’re expecting.

“But probably the big thing now is the rate of that increase over the next few months.”

The report showed homeowners shunned going to the market early in 2019, with annual sales falling 23 per cent compared to 2018 — 18 per cent below the five-year average.

Geelong’s median house value of $562,000 was up more than 34 per cent over five years.

Mr Kusher said the financial regulator’s call to ease rules impacting the amount of money homebuyers could borrow had helped buyers.

“The APRA rules mean that for people that could already borrow, they could borrow more, and for people that were getting turned away because they couldn’t meet that 7.25 per cent cap, even if they could only slightly not meet it, they can now get into the market,” he said.

“It’s certainly having a contributory effect, particularly in the more expensive markets like Sydney and Melbourne but even parts of Geelong are pretty expensive.”