Geelong home values rise for second successive month

A healthy rise in Geelong house prices comes after coronavirus lockdown was lifted. But does it mean homeowners can raise their expectations?

Peter Farago

2 min read

December 1, 2020 - 3:09PM

Geelong Advertiser

Competition for Geelong property is increasing. Picture: Peter Ristevski

Geelong’s property market has emerged from the coronavirus lockdown with values rising a healthy 4.2 per cent this year, new data shows.

The region’s median house value climbed to $626,000 in 12 months to November, including a 1.2 per cent rise in the past month, the latest CoreLogic Home Value Index, released Tuesday, shows.

It’s the first report after Melbourne’s coronavirus lockdown was lifted, allowing more buyers into the region to buy property.

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Victoria also announced a 25 per cent stamp duty discount on purchases of existing properties in last week’s budget, which is expected to fuel demand.

Values rose in all capital cities, although Melbourne’s annual change remained -.9 per cent, the index showed.

The release of Melbourne buyers from lockdown has increased competition for property in Geelong.

Buxton agent Ben Riddle said the release of Melbourne buyers after months in lockdown, coupled with unprecedented buyer incentives and record-low interest rates was giving the market a sugar hit.

“We’ve certainly got Geelong more on the radar now for people, we’ve got great infrastructure and we’ve got those key amenities that people want in lifestyle,” he said.

“I can’t remember there being more on offer to incentivise somebody to buy property and throw in that we’ve got record-low interest rates that makes money so cheap.”

Local investors snapped up 9 Sandtoft Court, Highton at auction on Saturday for $741,000.

McGrath, Geelong agent David Cortous said two local buyers contested the 1990s era home.

Whether the rise would be sustained would not be evident until next year, he said.

“We’re not sure whether COVID is delivering more Melbourne people, or in the space of three weeks there’s been more Melbourne people down because they couldn’t come down in September or October to purchase.

“We feel like were getting that sugar hit now.”

“It will be interesting to see when the market settles down and gets to some normality with open for inspections and marketing and auctions, whether the growth is going to be there still or whether we are getting a spike now because the last quarter didn’t see any Melbourne transactions.”

Agent Nathan Ashton said buyers remain savvy despite the rise in values. picture: Glenn Ferguson

Gartland Property, Geelong agent Nathan Ashton said a lack of supply was driving value.

“Pretty much every property at the moment that is selling, is selling under competition, whether that’s by auction or private sale,” he said.

“Like any time in the market, it always comes down to price sensitivity.

“The market is still quite savvy. They know if a house is overpriced, they’re not going to get the competition. As long as sellers are quite sensible, they are going to be rewarded.”