Land price up, housing ‘stalls’

By Michelle Herbison
GEELONG’S land prices grew more than other parts of western Victoria last year, according to a researcher.
PRDnationwide research analyst Mark Corboy said a study found the median price for vacant land in Geelong increased 11.6 per cent in the year to January.
But the median house price stalled at $340,000.
Mr Corboy said land prices growth typically outstripped houses but last year’s figures were exceptional.
“Geelong’s land price growth is growing more strongly than most of the other markets I cover.
“Houses and units are pretty strong in Geelong but reasonably typical compared to most other markets.”
The study included Geelong’s suburbs and some surrounding towns.
Areas of the Bellarine Peninsula and the Surf Coast were omitted, while Lara, Little River, Ceres and Avalon were included.
PRDnationwide Geelong principal Alex Campbell said vacant land supply around Geelong had failed to meet demand.
“There’s a fair bit of land coming onto the market now or shortly but a lot of that was held up.”
Mr Campbell said delays in infrastructure and planning permit approvals had caused the shortage.
Land had sold “fairly quickly” at each of his four estates when it was released, he said.
“Prices have pushed up a bit at each stage due to supply and demand.”
Mr Campbell expected some young professionals wanting house and land packages in new estates to look elsewhere when the Federal Government’s first-home owners bonus grant ended on June 30.