Lower stock levels, record low interest rates and strong population growth are creating an ideal environment for property investment in 2017. The latest property data has great news for investors who have their eyes on the Geelong property market, with affordability, low vacancy rates, good capital growth and strong returns across various suburbs in the area.
DEMAND FOR FAMILY-SIZED HOMES
Demand for space in Victoria has boosted the median house price of family-sized homes, with significant price growth recorded over the past year in regional areas like Geelong. New REIV data shows four-bedroom homes in regional Victoria experienced the highest annual growth of any property type, up 3.5 per cent over the year to a median of $445,000.
Three bedroom homes are also popular with buyers, up 1 per cent statewide to a median price of $315,000. East Geelong in particular experienced strong annual price growth for this property type, increasing 25 per cent to a median of $512,000. Investors can expect demand for spacious and affordable housing in suburbs around major hubs like Geelong continue to grow as more families search for an affordable place to live close to amenities.
BEST SUBURBS FOR INVESTMENT IN GEELONG
While investors can expect negative returns in central Geelong and along the coastal areas like Torquay, Barwon Heads, Point Lonsdale and Ocean Grove, property in eastern and northern suburbs as well as rural areas like Winchelsea and Inverleigh are performing well.
Geelong’s inner suburbs perform best for long-term investors due to their lower prices, proximity to the CBD and established infrastructure. Belmont and East Geelong are the biggest growth suburbs in Geelong, but interest in the northern suburbs is growing because of cheaper property. Investors can snap up affordable properties in high growth areas such as Corio and Breakwater which have low median house prices and high rental yields.
The top 10 performing suburbs for return on investment in the Greater Geelong property market over the past 12 months:
- Breakwater
annual growth – 3.1 per cent
median price – $291,000
median rent – $305 per week
rental yield – 5.4 per cent
rental demand – high
cash flow – $341 per month - Wandana Heights
annual growth – 0.2%
median price – $585,000
median rent – $530 per week
rental yield – 4.7 per cent
rental demand – average
cash flow – $328 per month - St Albans Park
annual growth – 0.8 per cent
median price – $326,000
median rent – $325 per week
rental yield – 5.2 per cent
rental demand – average
cash flow – $310 per month - Marshall
annual growth – 5.6 per cent
median price – $398,000
median rent – $380 per week
rental yield – 5 per cent
rental demand – average
cash flow – $309 per month - Winchelsea
annual growth – 2.6 per cent
median price – $295,000
median rent – $300 per week
rental yield – 5.3 per cent
rental demand – average
cash flow – $307 per month - Whittington
annual growth – 1.8 per cent
median price – $279,000
median rent – $285 per week
rental yield – 5.3 per cent
rental demand – average
cash flow – $296 per month
- Corio
annual growth – 1.7 per cent
median price – $250,000
median rent – $260 per week
rental yield – 5.4 per cent
rental demand – average
cash flow – $285 per month
- Thompson
annual growth – 1.8 per cent
median price – $308,000
median rent – $200 per week
rental yield – 5.1 per cent
rental demand – high
cash flow – $263 per month - Newcomb
annual growth 2.7 per cent
median price – $310,000
median rent – $300 per week
rental yield – 5 per cent
rental demand – average
cash flow – $256 per month - North Geelong
annual growth – 2.8 per cent
median price – $333,000
median rent – $316 per week
rental yield – 4.9 per cent
rental demand – high
cash flow – $250 per month
LOOKING FOR INVESTMENT PROPERTY IN GEELONG?
If you’re thinking about property investment in Geelong, go to the local experts. Hayeswinckle uses their understanding of their local community to succeed with the foundation and culture of the company firmly rooted in Geelong. Check out our latest listings in Geelong here.