Where Geelong’s next million dollar suburbs will emerge

Discover the million dollar suburbs most likely to emerge in Geelong as the demand for lifestyle properties is drawing more buyers than ever before to the Geelong region.

Increasing lifestyle demands of homebuyers is set to drive a clutch of Geelong property hot spots to reach a $1 million median price in the next year.

New analysis of price trend data shows there’s a handful of Geelong and coastal suburbs where house prices are on the cusp of reaching a $1 million median.

Until now, the region’s most expensive towns have hugged the coast from the tip of the Bellarine Peninsula and along the Great Ocean Road.

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Lorne, Barwon Heads, Queenscliff and Jan Juc are among the region’s priciest housing markets, with median house prices between $1.2 million and $1.5 million.

But even if the current wave of bumper capital growth in the region moderates to half the present rate, there should be at least three new million dollar suburbs emerging in the region in 2022.

And some will be a lot closer to central Geelong than previously experienced.

GEELONG’S MOST EXPENSIVE AND AFFORDABLE SUBURBS

Point Lonsdale, Newtown and Torquay are the hot spots most likely to reach $1 million

McGrath, Geelong agent David Cortous said growth rates of almost 20 per cent experienced in many suburbs this year were not sustainable, but key suburbs were likely.

“But I don’t think you’re going to see any type of correction, you’re going to see a plateauing of the growth back to its normal rate,” he said.

Point Lonsdale is the Geelong region town most likely to next reach a $1 million median price, new analysis shows.

Point Lonsdale

A boom interest around Port Phillip Heads has driven Point Lonsdale’s median house price up 17 per cent in 12 months to $992,000, according to Hometrack.

Even if capital growth is halved next year, Point Lonsdale is on target to become the region’s next million-dollar suburb.

But local agents say the data underrates the true value of the Point Lonsdale market.

Kerleys Coastal, Point Lonsdale, agent Damian Cayzer said the town’s median house price, when excluding new land sales, was more like $1.4 million.

Recent CoreLogic figures based on the median value for houses, show Point Lonsdale values climbed 10 per cent in a year to $1.272 million.

Mr Cayzer said the estates, like The Point and Lonsdale Shores, were in-fill developments that would close out all the available land in the town.

But he said most buyers looking for the lifestyle opportunities wanted to buy in the old part of town, close to the water where homes were nestled among the ti-tree.

Mr Cayzer said the usual flow of holiday homes had also dried up as owners held on to their escape from the city.

87 Glaneuse Road, Point Lonsdale, sold in May. It had been listed with price hopes of around $2 million.

Fletchers, Queenscliff agent James Gladman said the market had seen some enormous growth over the last 12 to 18 months in line with other areas on the peninsula.

“With the latest lockdowns, people have had a real shift in their mindset in where they want to be,” he said.

“If we don’t have to be up there five days a week, we may as well live where we want to live and enjoy the lifestyle.”

The impact is being felt at the schools, where Mr Gladman said enrolments are up.

“It’s been a lot of families that have actually moved down. Traditionally a lot of the area has been an older population, but were getting a lot of young families moving in now.”

The Geelong College is one of the prestigious private schools found in Newtown. Picture: Zoe Phillips

Newtown

Newtown is the pinnacle of real estate in Geelong — the Toorak of Corio Bay, says David Cortous, of McGrath, Geelong.

The suburb has edged closer to a $1 million median house price, rising a healthy 9.7 per cent in 12 months to a $992,000 in June.

Demand for prestige property is on the rise, including rare auction sales of $2 million homes in the last month, while Newtown’s first $6 million home sold in Raith Terrace earlier this year.

The suburb’s famed college precinct is always a driver in Newtown, Whitford agent Dale Whitford said.

Auctioneer Ben Riddle called the auction at Skene St, Newtown, which for $2.3 million, one of two multimillion-dollar auction sales in the suburb recently.

“Newtown has always thrived as a pretty area and close to town and it has lovely quality housing. But the schools are here and people flock to that. They want to make life as easily as possible, convenient for the kids. We’re saturated with good schools.”

McGrath, Geelong agent David Cortous said bigger sales in key suburbs like Newtown were boosting median prices.

“You will see those million-dollar suburbs tick over in the next few months, it will happen in the next year.”

Bell Street, Torquay. Picture: Mike Dugdale

Torquay

Torquay is another coastal hot spot that’s on the cusp of reaching a $1 median house price in the next 12 months.

The Surf Coast capital has a $970,000 median house price on the back of a 17.4 per cent increase over the past year.

But other research shows it’s already there.

CoreLogic data for median value tracked a 14 per cent annual rise to reach $1.13 million.

Agents say it’s not just an exodus from Melbourne that’s fuelling the price growth, with a lot of the top sales going to locals looking to upgrade.

McCartney, Torquay agent Tim Carson said previously sellers were cashing in on high competition, with many homes selling above asking price in Torquay.

Renovated homes in Geelong, like this one at 135 Verner Street, are achieving $1 million sale prices. Picture: Mark Wilson

Geelong

Research conducted in 2020 identified Geelong as the region’s $1 million smokey.

But it’s more likely it will be several years before prices reach that mark.

Central Geelong has a median house price of $885,000, with an annual growth rate of 18 per cent.

Mr Whitford said the suburb’s property market has successful absorbed two recent massive apartment projects with minimal impact on the growth rate.

In fact, re-sales in the Miramar and Mercer developments have been substantially higher than their off-the-plan price.

“The apartment developments haven’t hurt the volume of sales or the value of sales in Geelong,” Mr Whitford said.

Geelong’s mix of houses spreads from inner city cottages to enormous beachside mansions, this most expensive of which sold for $4.7 million on The Esplanade last year.

It’s most likely though that a $1 million median price will come in the next few years, with Mr Cortous tipping growth to moderate.

“I think you will see the same amount of people coming out of Melbourne to our region,” Mr Cortous said.

“When overseas immigration opens up, you will see another boost then.”

This home in Volum Street, Manifold Heights, which fetched $1.725 million recently, is an example of the renovated homes on big blocks in the suburb.

Manifold Heights

Like, Geelong, Manifold Heights is a small suburb that has been thereabouts.

A covenant across most of the inner western suburb means subdividing is out of the question, which, along with a traditionally tight market, has helped those in the know to purchase and renovate.

“If you want a decent block of land in Newtown or Manifold Heights to build on or extend on, you’re paying around $1 million just for that,” Mr Cortous said.

Beach walks proved popular for families at Ocean Grove during a recent Covid lockdown. Picture: Alan Barber

Ocean Grove

The exodus of people from Melbourne, but also regional Victoria to the coast has benefited house sellers in Ocean Grove.

The Bellarine Peninsula hot spot has a $846,000 median house price, which is 19.6 per cent higher than the same time last year.

More homes have sold in Ocean Grove in the past 12 months than any other town or suburb in the region.

New Ocean Grove: This four-bedroom house at 7 Coramba Street recently sold for $1.2 million.

RT Edgar, Ocean Grove agent Brock Grainger said people prioritising lifestyle had injected so much more competition for property in the town.

“People are just prioritising lifestyle and getting out of the cities. A lot of people have just fast-tracked their plans,” he said.

Ocean Grove has been home to some of the peninsula’s most expensive homes, but Mr Grainger said the price bracket around $1 million had drawn a lot of competition.

“Things have probably slowed a bit, but it could be another calm before the storm after another lockdown.

“There is not a lot on the market, whenever we do get a really good listing, it is going silly.”

Originally published as Where Geelong’s next million dollar suburbs will emerge