Neglected region set for bumper home price growth

This often overlooked yet ideal lifestyle region is often overlooked by homeseekers but is set for strong price growth this year.

76 Polwarth Rd, Lorne, is listed with a $5.25m price guide.

The turnaround in Geelong’s housing market continues to show signs of gaining momentum as new data reveals the best performing suburbs in the past quarter.

Premium inner city suburbs and popular coastal holiday towns recorded the strongest growth in home values over the past three months.

The PropTrack figures shows more than half the region’s suburbs saw a rise in house and unit prices.

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But overall Geelong’s market remained flat, with values dipping 0.1 per cent for the quarter.

House values in Lorne saw the best gains, with the median rising 3.48 per cent — or more than $64,000 — to $1,913,260.

But it was not enough to claw back the 1.19 per cent slide from the same time last year.

Other bright spots to see positive growth in house values included Geelong, Bannockburn, Geelong West and Torquay.

Unit and townhouse prices climbed 1.99 per cent to $637,272 in Geelong, with Manifold Heights, Drysdale, Ocean Grove and Corio also on the rise.

11 Ware St, Bannockburn, is on the market for $750,000 to $825,000.

PropTrack senior economist Paul Ryan said there were encouraging signs for the region, which finished the year stronger than expected.

“If we look at houses and units together we have got more than half the suburbs have seen positive growth over the past three months,” Mr Ryan said.

“You see the positive growths are stronger than the falls in those places where prices are going the other way so it shows prices are continuing to drift upwards, gaining a bit of momentum.”

14 Lawton Ave, Geelong West, is slated for auction with a $1.15m to $1.25m price guide.

Great Ocean Road Real Estate director Ian Stewart said despite price ebbs and flows, conditions remained challenging for lifestyle and holiday home markets such as Lorne.

But he said a booming culinary scene with three hatted restaurants and the recent reboot of the town’s cinema provided a strong foundation for a rebound.

“That last six months of the last calendar year has been as slow as any period in the last 10 years,” Mr Stewart said.

“It’s going to be real interesting to see what this next six months does, especially at a time when we expect to be writing bigger numbers. January is really going to tell the story.”

1305/44 Ryrie St, Geelong, is selling for $780,000 to $810,000 in the recently completed Geelong Quarter complex.

Jellis Craig Geelong agent Marcus Falconer said the perennial popularity of Geelong and Geelong West underscored their recovery.

He said they remained top of buyers’ wishlists, including that of investors who were returning to the market.

“A lot of investors are starting to see the bottom of any correction,” Mr Falconer said.

“Things are going to be on the rise in 2024, in my opinion. Hopefully we get some interest rate reductions relief and I think people will start to reinvest in property and that 2.5km ring of the Geelong CBD will remain incredibly popular.”

Originally published as Neglected region set for bumper home price growth