Geelong suburb named in national list of top 50 investment locations
A surge in rental demand has seen a Geelong suburb named among the best picks for investors across the country. This is why it has become a savvy pick for buyers looking to expand their portfolios.
A Geelong suburb has been named one of the nation’s top 50 investor suburbs where buyers can bank on maximum returns.
Corio has become a favourite pick for savvy buyers looking to expand their portfolios.
Now new realestate.com.au data confirms the affordable northern suburb is the region’s star performer and the only Geelong suburb to rank in Victoria’s top 30 regional investment markets.
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Stellar 10-year capital growth of 78.9 per cent and 5.1 per cent annual lift in rental demand underpinned Corio’s spot on the list.
While the rental yield of 4.4 per cent has fallen with rising prices, it still delivers better returns than most of Melbourne’s top performing suburbs.
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Mildura, Warrnambool, Morwell, Wodonga, Wangaratta and Hamilton were among other regional towns to make the national top 50 list as Covid drove greater demand and rent increases outside the capital.
Ray White, Lara agent Maddison Modica said affordable prices and low vacancy rates made Corio a “no-brainer” for investors.
“There is high demand for rentals and that in turn pushes rental prices up so naturally that gives a better rental yield for an investor and because Corio is one of the more affordable suburbs it’s obviously attractive to investors,” Ms Modica said.
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Young Melbourne pharmacist Leon Yuen and his partner bought their first investment property in Geelong’s northern suburbs in 2019 and have since added another three to their portfolio
They paid just over $360,000 for their latest three-bedroom house on a 670sq m block.
Mr Yuen, 25, said he couldn’t afford to invest in Melbourne but Corio offered an attractive price point just 50 minutes from the CBD.
“When I bought that first one in Norlane I paid about $270,000 for a big block and what you are buying is land value as well,” he said.
“But I feel there are quite a few things in the pipeline like the Spirit of Tasmania’s new port, obviously there’s money being put into the area, so that gives a bit of confidence.”
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“Another thing is that a lot of people buy a house for $700,000 and it’s highly negatively geared, when you buy in Corio the property pays for itself.”
Harcourts, North Geelong agent Joe Grgic said while rental yields had eased in Corio, it remained a great value proposition compared to other suburbs within one hour of Melbourne.
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“There’s Melbourne and Sydney investors still coming down and they see the value as irresistible to be honest, especially certain pockets where there’s larger sites,” Mr Grgic said.
“The appetite is very strong for something with that potential for future development.”
Realestate.com.au economist Paul Ryan said capital growth prospects had trumped rental yield for investors in recent times but that may be about to change.
“Moving forward I suspect investors will be more focused on yields if the capital gains returns can’t continue the way they have been,” Mr Ryan said.
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