Geelong’s Growth Leads The Country
Geelong has officially become Australia’s fastest-growing property market according to new data. The city’s phenomenal sustained growth over the last five years indicates that Geelong has truly entered its time of renewal.
The region has become a hot-spot for property buying and selling over the last five years, and there’s no sign of it slowing down anytime soon.
According to CoreLogic data, median house values rose 15.9 per cent to $567,000 in June, while unit values rose 10.6 per cent to $392,000. Prices have been driven up largely by population growth, along with increased competition for available properties.
The 2018 spring residential market has already leapt into action, with Geelong’s clearance rates hitting 91 per cent, compared to that of Melbourne, currently at 62.4 per cent. In September, Gartland Property achieved a clearance rate of 100 per cent.
For property owners looking to sell in Geelong, now could not be more ideal.
On October 2nd, the Reserve Bank announced that the official interest rate of 1.5 per cent would remain on hold for a record 26th month in a row. Whilst Melbourne property values are expected to reduce slightly over the next year, Geelong has and will continue to buck this trend with future growth forecasted and almost guaranteed across the entire region.
Regional Growth Drivers
The city’s residential population is rising by 3.0 per cent annually, which is expected to continue for years to come. Based on 2017 data, Geelong has a population of about 240,000. This figure expected to surpass 320,000 by 2036.
Melbourne’s population growth has trickled down the coast, with more city-dwellers moving to Geelong in response to comparably favourable property values. At this point in time, the residential property dollar simply goes further in Geelong.
This also appears to be driving a significant attitudinal shift of Melbournians. The region is increasingly admired for its relaxed lifestyle with excellent schools and amenities. The travel time to central Melbourne is comparable to many of the city’s outer suburbs, making Geelong a viable option for city workers.
Geelong is increasingly capitalising on its development potential, becoming a growth hub in variety of sectors including government, technology, health care and the creative industries.
The highest percentage of individuals living in Geelong are professionals, making up 29.9 per cent of the population. The second highest industry is trades and technicians at 14 per cent, followed by administrative workers at 12.3 per cent.
Notably, the relocation of major Government agencies including TAC, WorkSafe, NDIA and the Australian Bureau of Statistics have significantly boosted the region’s employment potential.
TAC and WorkSafe were a major part of the GROW (G21 Region Opportunities for Work) initiative in 2016, encouraging jobs to be sourced within the Geelong region. It is estimated that 600 people alone migrated from Melbourne to Geelong to pursue employment at WorkSafe.
Additionally, major investments in the new Epworth Hospital and the imminently international Avalon Airport and Barwon Health have bolstered jobs and enhanced the region’s attractiveness to other investors.
Geelong’s population expansion has reflected Government plans for new infrastructure including a Geelong to Melbourne fast-rail, set to be completed within the next 10-15 years, as well as an airport rail link.
If today’s market is any indication (and we believe it is), the future in Geelong is bright indeed.
Gartland Property has significant expertise across Geelong’s residential and commercial property market. If you’re interested in buying, selling or renting in Geelong and its surrounding areas, please submit an enquiry today.