Geelong house and land prices are skyrocketing with an influx of Melburnians a boon for investors but forcing homebuyers to look elsewhere.
The influx is causing prices to increase faster than local buyers, especially aspiring first-home owners, can keep up with, according to Geelong-based buyers advocate Vicky Whittaker.
“What you could get three months ago, you can no longer get – $600,000 used to buy you something decent in some of the good areas of Geelong,” she said.
“If you’ve got $550,000 to $600,000, and you want to build a house on a decent block of land, unless you’re looking in Norlane and Corio, there’s nowhere in Geelong.
“I’ve had a couple of clients who’ve had to alter what they’re looking for, because they can’t afford what they initially could.”
Higher property values in Melbourne meant those moving down after selling had much higher budgets than locals, driving price increases, Ms Whittaker said.
But even some Melburnians had begun looking elsewhere, she said.
“I had one client from Melbourne who originally wanted to buy in Geelong. Now they’re looking in Ballarat.”
Ms Whittaker said the trend was making Geelong locals hesitant to sell, creating a supply shortage that in turn was driving prices higher.
“They’re just worried that – even though they’ll get a good price – they won’t be able to find something else.”
This week Oliver Hume released research, commissioned by Villawood Properties, showing median prices for 350 square metre blocks had increased by $33,100 (13.3 per cent) from $247,900 to $281,000 in the year to June 2021.
Prices for 400sqm blocks increased by eight per cent while 448sqm blocks were up 11.3 per cent from $292,000 to $325,000.
REIV figures show greater Geelong house prices increased 18.8 per cent for the year to June to a median $695,000.
Oliver Hume head of research George Bougias said working-from-arrangements resulting from the COVID-19 pandemic had driven the influx of Melburnians.
“People are rediscovering the regions, especially for the lifestyle they offer,” Mr Bougias said.
“Geelong also offers great value for money. Many people in Melbourne are finding they have an appreciable asset that goes a long way in the regions.”
