City now ‘hot for investing’

KIM WATERS
Geelong has transformed from an unfashionable “ugly duckling” into an attractive option for property investors, according to a new report.
Your Investment Property magazine has identified the city as offering “better growth opportunities” than blue-chip Melbourne suburbs.
The magazine’s Robin Christie said investors previously considered Geelong “unfashionable”.
But new research revealed that the city’s growth potential outweighed the risks of buying in a city still regarded among outsiders as “less popular”, he said.
“We’ve looked at a lot of factors including that house numbers have grown in recent years by 34 per cent, population growth has increased and the government is currently trying to take the pressure off Melbourne by encouraging investment in regional areas.
“The delivery of the first stage of the ring road, the redevelopment of Westfield and the relocation of the transport and accident commission to Geelong are also indicators that Geelong’s economy is on the up.
“And with the city’s low rental vacancy rates, investors can have their pick of tenants.”
Fruit Property Geelong director Peter Julian said investors previously considered Geelong a “working class” town with a focus on heavy industry.
“Now the whole place is being seen in a new light,” he said.
“The unfashionable tag comes from the past and should by now be well and truly shaken off. Investors will continue to benefit from property in Geelong, with options of rental returns around six per cent.”
Mr Julian said “those in the know” realised the city offered savings of “at least 40 to 60 per cent” on house prices and living expenses compared to capital cities.
“I speak to doctors and lawyers who tell me about friends and colleagues in Melbourne or Sydney and just how much it costs them and the lifestyle is nowhere near as good as Geelong or our coast,” Mr Julian said.
“We have the best schools, beaches and housing affordability.”
The Independent reported last month that a leading property values researcher had run an analysis showing perceptions of a “crisis” in central Geelong’s retail property market were wrong.
Opteon Victoria’s Richard Jenkins said the city had an acceptable vacancy rate that could fall into an ideal zone of less than five per cent with subdivision of only six large vacant spaces.
“There’s been a lot of discussion in the media about vacancies in the CBD, leading to a perception in the market that the space is in crisis but the numbers don’t support that,” Mr Jenkins said.
“The CBD is healthy and in a good position to promote rental growth. In fact, rents have grown in the past five years.”