The Budget will have a Positive Influence on the Geelong Market
The Federal Budget
Federal budget hype always creates some unease in the market place, causing speculation and hesitation. I have tried to provide an insight in to how this year’s budget will influence Geelong’s property market.
Geelong is the anticipated recipient of close to 20% of the $516 million budgeted for regional rail maintenance and upgrades to the Geelong and Warrnambool lines. The first stage is the duplication of tracks between South Geelong and Waurn Ponds, with a future line to Torquay. The first stage will have a strong influence on the Armstrong Creek Growth precinct, Marshall and the Waurn Ponds housing markets. Armstrong Creek, Warrililly, Warrilily Coast and Armstrong estates are on the South Side of Geelong and the 20-minute drive to South Geelong or the Geelong Station restricts the desirability of living in the new housing estates. The result of increased train services brings these estates closer into town, offering an affordable housing alternative, increasing buyer desirability which will have a positive influence on pricing and demand.
15 local primary Schools will be the recipients of a combined $21million, which will be utilised to upgrade and modernise them. The most recent test case regarding the impact on house prices, in the immediate area around redeveloped schools is, Belmont Primary School. Around $2million was spent upgrading the school approx. 5 years ago and the flow on effect of the property pricing is still being felt today. The facility improvements ensured Belmont Primary became the School of choice. Due to the increase in student numbers, the school zoning needed to be enforced, making the homes in the school zone increase in value almost overnight. One of the major criteria for buyers looking to purchase in Belmont was whether it was in the right zone, and if it was, then competition would be fierce, fuelling auction competition and sale prices. My suggestion would be to take note of the schools that are going to benefit from this redevelopment funding, as they represent excellent future growth prospects.
Not necessarily impacted by the budget, but something to take note of, and that is the impact that Belmont High School is having on the local property market. Oberon High school will be relocated to Armstrong Creek, which will leave only 2 public high schools in the 3216 region. The reduction of choice will mean greater enforcement of the high school zones, which will be split between Grovedale College and Belmont High. Belmont’s exceptional academic record will ensure that it will remain the desired choice. This will mean that properties in that zone will command higher prices and generate greater competition.
This year’s budget will have a positive influence on our market while creating greater access to affordable housing which will help maintain the current strength of individual investments.