Suburbs bucking Geelong’s housing price slump revealed

Geelong property values have fallen again, but it’s fast approaching the time to buy, with new data revealing a handful of suburbs where things are already looking up.

5 Trafalgar Square, Wandana Heights, listed with $1.2m to $1.3m price hopes, is under contract.

Geelong’s housing market has slumped again, but it’s fast approaching the time to buy.

Hits to borrowing capacity and a cost-of-living crisis have combined to limit house price increases to just three suburbs in the region: Wandana Heights, Newtown and Bannockburn.

Wandana Heights’ $1.015m median gained the most as its value rose about $8115 (0.8 per cent) in the past financial year. Newtown was next, with the $1.129m median up $7675 (0.7 per cent) compared to a year ago.

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Bannockburn home values rose just 0.1 per cent.

Units fared slightly better, with gains headed by Herne Hill’s typical offering rising $10,000 (2.7 per cent) to $390,000.

Flats and townhouses in Hamlyn Heights, Portarlington, Geelong, Drysdale and Lorne also notched modest growth.

But coastal areas just outside of Geelong have born the brunt of a regional house price correction, with half of the state’s 10 worst performing suburbs and towns for house prices either on the Bellarine Peninsula or the Surf Coast.

46 Stephens Parade, Barwon Heads sold in June for an undisclosed price. It was advertised for $2.8m-$3m.

They include Barwon Heads, Jan Juc and Point Lonsdale as the state’s three worst, as well as Ocean Grove, fifth, and Queenscliff, seventh.

PropTrack economist Anne Flaherty said the current reductions were a flow-on effect of extraordinary rises during the Covid-19 pandemic.

“The other thing is that it’s a region where a lot of people go to purchase more affordable properties,” she added.

With the cost-of-living crisis and interest rates, affordability sensitive buyers simply cannot pay more at present, she said.

However, with the region still offering popular lifestyle benefits, Ms Flaherty said a return to growth was likely a matter of time — particularly for Geelong and its suburbs.

PropTrack economist Anne Flaherty.

“I do think it has really great long-term prospects for growth, and what we are seeing at the moment is a short-term thing,” Ms Flaherty said.

“So now could be a great time to invest or buy in Geelong. We have seen prices go down, so they are more affordable — but it’s still close to the beaches and has a great lifestyle.

“I think there’s an argument that there’s some good opportunities to get into the Geelong market at the moment.”

National Property Buyers director and buyer’s advocate Antony Bucello concurred, noting that Geelong much like Melbourne was poised for a come back.

“Geelong did go gangbusters and probably rose too high and too quickly, and now its correcting — and that’s not necessarily a bad thing,” Mr Bucello said.

“But it’s still providing all the right things, provided you buy the right property in the right spot. So now could be the time to take advantage of the market.”

37 Nantes St, Newtown, sold for $2,075m in June.

Buyers today could still potentially get a home “close to, but still below market value”, which the buyer’s advocate said was optimal.

Barry Plant Highton’s Julia Warren regularly sells homes in the Wandana Heights area, one of the few areas posting gains in the past year, and said its high prevalence of quality-built family homes, impressive views and big blocks had long kept it in demand.

And with relatively few people selling out of the area, unless they were ready to downsize, there was an air of exclusivity to it that helped it command a premium.

“The buyers that have been active in Wandana Heights have been looking for up to 12 months for the right home,” Ms Warren said.

“And even over the past month the homes I have been selling within a few weeks. Even one or two weeks. So it’s likely to continue on the same trajectory.”

This four-bedroomhoues at 4 Pilloud St, Bannockburn, recently sold for $741,000.

The agent added that those who didn’t regularly make the trip up the hill could get a good sense of what was on offer with the recently under contract 5 Trafalgar Square — a builder’s-own, four-bedroom home on a 1049sq m allotment. It was advertised with a $1.2m-$1.3m asking price.

At the other end of the spectrum, Bellarine Property boss Christian Bartley said falling figures in Barwon Heads should be viewed in the context of where they were in 2018-2019 — before the Covid pandemic.

Mr Bartley said in this regard they were still well up, and buyers taking a long-term view would still see value in the coastal hamlet.

He added that the region remained popular today with 21 homes sold in the past two months by his firm alone, and he said he believed a rebound would be on the cards before the end of this decade.

“The market always bounces back,” Mr Bartley said.