Investment potential as Greater Geelong unit prices soar

Melburnians continue to seek a coastal sea change and more affordable housing in Greater Geelong. More than 15,000 people relocated to the region in the 2019-2020 financial year, with more than 9100 moving to Geelong, according to ABS data.

While remote working and lifestyle change were the key drivers throughout the pandemic lockdown period, Barry Plant Geelong director Tim Palioudis said it was mainly the cost of living that fuelled this trend.

“Affordability across Greater Geelong in comparison to Melbourne is definitely the biggest key driver for migration,” he said.

“The cost of living is simply less in regional areas, from housing affordability right down to a daily parking charge.”

Barry Plant Geelong agents had noted a recent surge in the number of Melbourne-based house hunters, after a slowdown in such enquiries over the previous six weeks.

While it’s difficult to determine the reasoning behind the spike, Mr Palioudis said Melburnians could now be feeling the pinch with recent interest rate rises.

“You can buy some really good real estate in Geelong, and looking at it long-term, it’s a good investment,” he said.

Mr Palioudis pointed to a Port Melbourne family who sold their home for $1.4 million and had now relocated to Geelong.

“For half the price, they now have no mortgage and are living in a very similar heritage-style home, which is in better condition..”

Greater Geelong’s median house price is $940,000, while the median unit price is $730,000, according to Realestate.com.au data.

As most markets experienced a drop in sales during the recent market slowdown, the unit market in the region experienced exceptional growth, a 13.2 per cent rise in the past 12 months since May 2022.

Mr Palioudis said Geelong had everything Melbourne had to offer, on a smaller scale.

“We have everything the bigger cities have, all the convenience of shopping centres, medical facilities, elite education and employment opportunities, and with Melbourne-city equivalent pay,” Mr Palioudis said.

“There’s all of that plus minimal traffic, a lower cost of living, a great lifestyle, country feel, and the extraordinary beauty of the region.”