The median house price in Geelong has hit $1 million for the first time as demand for property in regional Victoria continues to grow, according to the latest data from the Real Estate Institute of Victoria.
The REIV recently released its latest quarterly report, which showed Geelong’s median house price had jumped from $897,000 in June to $1 million in September.
It followed the trend of growing house prices in the region, with the median house price increasing by almost one-third over the last 12 months.
McGrath Geelong principal David Cortous said Geelong had seen a significant real estate boom in the past year.
“The demand is there to point where we have seen a 20 to 30 per cent [price] rise in some suburbs,” he said.
“Particularly in some of the quality suburbs, like Highton and Newtown, you’re really regularly seeing prices over $1 million … sometimes even for properties that are going to be knocked down.
“Prices have gone up without a doubt and I don’t think we’ll see them come down again any time soon.”
Mr Cortous said the real estate boom, influenced by the pandemic, over the past 12 months had seen demand for houses in Geelong skyrocket.
“Regional Victoria is seeing a real estate boom and Geelong was always pinned as one of the stronger markets,” he said.
“Those larger regional cities that are close to capital cities have been the strongest markets, so being only 75 kilometres from the capital city, Geelong houses have been in demand from people looking for a bit more space, especially when people are spending more time at home.
“There’s also record low interest rates at the moment, which have made it easier to borrow money, which has impacted prices, but the market in Geelong was also undervalued.”
Mr Cortous said the continued increase was also notable as Melbourne buyers had been locked out of the market for most of the last quarter due to lockdown.
“I did have one property sell for $1.83 million recently to a Melbourne buyer sight unseen, but that’s not usual,” he said.
“I expect that demand is still going to be there when lockdown lifts and Melbourne buyers are back looking to move.”