PropTrack shows jump in apartment values as Geelong buyers splash on dream homes

Geelong homebuyers are splashing out on apartments as PropTrack Home Value Index figures show units are outshining growth for houses. See what’s behind the trend.

Developments around Geelong’s waterfront are in high demand.

Apartment and townhouses are rising in the property market this spring as new home value figures shows the segment outperforming houses.

The volume of high-end Geelong waterfront homes selling for multimillion-dollar prices shows the depth of demand for the uber-expensive class of property.

New PropTrack Home Price Index figures shows unit values rose 2.04 per cent in Geelong in three months to December, outstripping houses which fell .2 per cent over the same time.

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Local agents said it was a sign of what people were prepared to pay at the top end of the market.

McGrath Projects, Geelong director Jim Cross said projects such as Stella Maris, Cunningham Place and Balmoral Quay had achieved sale prices from $2.2m to $4.5m.

McGrath Projects Geelong director Jim Cross.

“When you go into the suburbs, your average sale price for a (top-end) townhouse might be $1.5m to $2.2m,” he said.

“It’s interesting how the market has taken to this larger apartment living and the low maintenance lifestyle on the waterfront,” Mr Cross said.

“They’re really prepared to pay for that lifestyle that comes with waterfront living and also the low maintenance environment.

“And what also comes with those complexes is the amazing amenities like swimming pools, and wellness centres, gymnasiums.”

Stella Maris is a $125m waterfront apartment and townhomes development at Rippleside that’s already set off-the-plan sale records.

Mr Cross said 90 per cent of buyers in these projects were locals who were downsizing.

“A lot of them have worked hard all their life and run businesses and built some level of wealth, brought the kids up and put the kids through uni and everyone’s moved out of the family home,” he said.

“Now they’re wanting to treat themselves and retire on the waterfront. We are seeing obviously signs of that in the suburbs as well.”

Top sales in these projects include $5.7m for a four-bedroom Stella Maris penthouse in Rippleside, $4.35m for a four-bedroom penthouse at Cunningham Place in central Geelong and $3.52m for a three-bedroom apartment at Balmoral Quay.

Balmoral Quay has helped change the landscape of Geelong’s apartment market.

The quality of suburban projects had increased as market tastes changed.

“They’re more architecturally designed townhouses now rather than being volume build products because people are expecting quality fixtures and fittings and really nice design,” Mr Cross said.

But the prices being achieved on the waterfront weren’t translating in the suburbs, he said.

“There is definitely a clear line between what people are prepared to pay on the waterfront, per square metre compared to the suburbs.”

The most expensive areas off the waterfront were around hubs such as Pakington St at Newtown or in Drumcondra.

Apartments in the Miramar building in Cavendish St, Geelong, continue to sell at high prices, including a two-bedroom level 17 residence for $845,000 recently.

Buxton agent Carl McCann said there had been a rise in higher quality apartments and townhouses in the market.

“There are certainly good quality buyers out there, mostly owner-occupiers, very few investors are looking to get into the apartment space. A lot are downsizers or people moving to Geelong.

Mr McCann said the rise in holding costs, led mostly by higher interest rates was driving more investors to sell units and apartments.

Geelong buyer advocate Tony Slack said the investor sell-off had proved to be a boon for buyers trying to break in to the lower end of the market.

The two-bedroom apartment at 5/141 Yarra St, Geelong, sold for $613,000 recently.

Mr Slack said unit and townhouse prices were still subdued in areas such as Hamlyn Heights, which had seen a rise in townhouse construction over recent years.

The Geelong property market remained flat overall in November, retaining a $749,000 median dwelling price.

That is 2.55 per cent, of about $19,000 lower than the same time last year.

PropTrack senior economist Eleanor Creagh said units had outperformed houses but overall Geelong remained a relative underperformer as the pace of fall in values slowed.

Ms Creagh said she expects interest rates to hold in December.

Originally published as PropTrack shows jump in apartment values as Geelong buyers splash on dream homes