Geelong’s best performing property markets revealed

Homebuyers splashed out more than $500 million on residential property in 2021 in one of Greater Geelong’s most popular coastal towns.

Jessica Robinson and her husband Vaughn with their kids Audrey, Harriet and Llewyn decided to sell their renovated Ocean Grove this year home to make the most of the red-hot market. Picture: Alex Coppel.

Homebuyers splashed out more than $500 million on residential property in 2021 in one greater Geelong’s most popular coastal towns.

More than 460 houses sold in Ocean Grove this year, according to CoreLogic’s annual Best of the Best report, released on Thursday, generating a total value of $485 million, the highest in regional Victoria.

Additionally, the 81 units that were snapped up in Ocean Grove – where the median unit value jumped 41 per cent – added $65 million to the total value.

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The Bellarine Peninsula town was the region’s most popular destination, well ahead of 340 houses traded in Torquay for a total value of more than $400 million.

Highton was the third-biggest suburb by value, with 382 houses selling for more than $347 million.

Buyers paid $1.5 million sight unseen for this Janelle Way, Ocean Grove home.

Belmont was regional Victoria’s biggest unit market, with 128 selling for $69.7 million, ahead of 91 sales for $65.4 million in central Geelong.

Another 78 units sold in Highton for a combined $42 million.

RT Edgar, Ocean Grove director Brock Grainger said the dramatic increase in price was driven by a shortage of supply and over-the-top demand.

“There was not a lot of people – initially with the lockdowns – wanting to sell, and after that they were worried about not being able to buy back in to a competitive market,” he said.

Huge demand for lifestyle opportunities fuelled the frenetic market.

7 Coramba St, Ocean Grove, sold for $1.2 million in June.

“It felt like the perfect campaign was two open homes and then it was sold,” he said.

“There wasn’t really a lot of point doing a three or four-week auction campaign because you were getting the best result prior to that.”

Mr Grainger said things have cooled, with days on market growing against as more listings come on and buyer demand drop off as a result.

Lifestyle villages on the Bellarine Peninsula helped boost turnover, he said, as many risk-averse locals stayed put.

“There wasn’t a lot of people upselling their house, largely because they were pretty scared of having to enter into pretty hot market.

“A lot of the people that were selling over the past 12 months were going into the lifestyle villages that are popping up right across our coast.

Ocean Grove’s main beach is always a popular spot. Picture: Alan Barber

“We had quite a lot of people leave for Queensland. It was a lifestyle choice – for the weather or they’d had a gutful of the Victorian government. Or a combination of both.”

CoreLogic Australian head of research Eliza Owen said more normalised remote working trends had boosted demand and values in Geelong.

“This is something we’ve observed in many of the major capitals – population movements and housing demand have spilt over into the next major commutable regional market. That characterises Geelong,” Ms Owen said.

But the push was a double-edged sword.

“What it means is locals start to get displaced, so I don’t think these popular regional markets can avoid a more broadbased downturn,” she said.

Higher interest rates, affordably constraints putting limits on demand, and higher listings volumes could contribute to a downturn in the market, she said.

Originally published as Geelong’s best performing property markets revealed