Geelong’s big shift as a regional hotspot for home buyers
Geelong is among the top 10 regional locations most popular with home buyers amid strong growth in people shifting to the region.
Geelong is among the nation’s leaders when it comes to regional locations most popular with buyers in 2024.
New research from NAB released today reveals Geelong is among the 10 regional hotspots for property purchases.
Latrobe-Gippsland is the other Victorian spot revealed in the research, which includes six Queensland regions, with Newcastle and Lake Macquarie in New South Wales topping the list.
Geelong was sixth, below Ipswich, Sydney Outer West and Blue Mountains, Logan-Beaudesert and Wide Bay.
NAB executive Denton Pugh said the Covid-19 pandemic sparked a shift to regional living, and demand is still increasing.
“Over the past few years, Australians’ love for the regions has only grown stronger, as people prioritise space, affordability, and a sense of community,” Mr Pugh said.
“In the past year, we’ve seen regional Australia grow by 5.4 per cent versus capital cities at 5.1 per cent.”
Top 10 regional hotspots for property purchases in 2024:
Newcastle and Lake Macquarie, NSW
Ipswich, QLD
Sydney Outer West and Blue Mountains, NSW
Logan-Beaudesert, QLD
Wide Bay, QLD
Geelong, VIC
Moreton Bay-South, QLD
Moreton Bay-North, QLD
Townsville, QLD
La Trobe-Gippsland, VIC
Source: NAB
It comes as a recent report from the Regional Australia Institute and the Commonwealth Bank revealed population flows to regional Australia were at their highest level since March 2022.
The report found high property prices and ongoing cost-of-living pressures were prompting more people to move to the regions, while those who had already left the big smoke were staying put.
Geelong and Lake Macquarie accounted for some of the largest shares of net internal migration.
Nearly 9 per cent of people relocating to regional Australia shifted to Geelong, with migration skyrocketing in the Borough of Queenscliffe, the research revealed.
CBA executive general manager regional and agribusiness banking Paul Fowler said regional Victoria’s share of net regional inflows rose from 21 per cent to 30 per cent.
“With more corporate employers setting up or relocating to Geelong, Queenscliffe’s proximity to Greater Geelong and the Melbourne CBD means more regional Australians can enjoy diverse employment opportunities while living in a beautiful location with enhanced lifestyle opportunities,” he said.
The surge in demand for Geelong property comes despite the region losing its affordability advantage to Melbourne.
PropTrack senior economist Cameron Kusher said the once-attractive price gap had disappeared, when compared to outer suburbs of Melbourne, which had reduced the buyer pool for properties in the region.
“Back in 2021 and 2022, Geelong offered a significant affordability advantage compared to Melbourne,” Mr Kusher said.
“This drew a wave of buyers seeking better value for their money.
“Now, however, prices in Geelong are comparable to Melbourne’s outer suburbs, which has significantly diminished its appeal.”
Mr Kusher noted high levels of stock across Victoria, coupled with lingering buyer hesitation, have exacerbated Geelong’s market slowdown.
“For Geelong’s market to pick up again, sellers may need to reset their price expectations – with fewer people relocating from Melbourne and prices no longer as competitive, demand has cooled, and properties are lingering on the market for longer,” he said.
Mr Pugh said potential rate cuts mid-next year could boost demand while bringing owners some relief, but there’s also the risk of further housing shortage pressures.
with David Bonaddio
Originally published as Geelong’s big shift as a regional hotspot for home buyers