By JOHN VAN KLAVEREN
GEELONG is set to buck the trend of languishing property values despite looming manufacturing job losses, a property research expert predicts.
Knight Frank research director Richard Jenkins said population growth would underline Geelong’s continued property market strength.
Property values in the nation’s metropolitan markets have fallen two per cent, according to a May RP Data-Rismark index.
Melbourne suffered the biggest drop, 3.6 per cent.
Mr Jenkins said Geelong might suffer a slight fall but expected values to hold up over the long term.
“Population growth is such that Victoria is the number-one state and that will feed through to the property market and Geelong will feed off that as well,” he said.
“While we can’t expect prices to continue upwards as in recent years, I do expect values will hold up.”
Mr Jenkins said the May figures were “more of an aberration than a continued fall”.
Geelong faced its own challenges from manufacturing closures affecting sentiment, he said.
“That will impact the market to some degree but the trend of people relocating to Geelong for relocation and affordability is still strong.
“Geelong is still an attractive option and the medium term will still be positive.”
Mr Jenkins said the local economy could also receive a boost as significant payouts to retrenched workers flowed through to the market.
“People will have a nest egg that will allow them to upgrade their dwelling because property is an easy investment for people.
“Employment conditions are soft but in stark contrast the investment appetite is strong for all sectors of property.
“There’s a greater allocation of investment to the property market by institutions and super funds and Geelong’s on the radar for many groups.”
