Geelong and Surf Coast to meet affordability challenge

THE economic challenge for Greater Geelong and the Surf Coast is to keep housing prices down and affordable across the region.

Melbourne is experiencing boom times at the moment, mainly fuelled by immigration, with a surprisingly large proportion of newcomers in 2017 also from Western Australia and New South Wales.

People are arriving from the mines in the Pilbara and a significant number of fly-in/fly-out workers are returning home as opportunities in WA dry up.

New South Wales people are arriving due to the difference in housing affordability between Melbourne and Sydney, and greater job opportunities.

This all adds up to pressure on prices.

Melbourne’s average land price has risen $100,000 in the past 12 months, far more than the modest rises recorded in Geelong.

This has created a large price differential between Melbourne and the Surf Coast.

So, buyers’ attention is rapidly turning to the Greater Geelong region – not only because of the great lifestyle but also because of the price break.

About 12 months ago, it was about $30,000. Now, obviously, it is far more affordable to buy in Geelong.

The worry, however, is the Melbourne buyer effect will make traditional Geelong prices rise and increasingly unaffordable for the average Geelong family.

Greater Geelong’s population growth rate has doubled over the past five years.

In 2017, it grew in the order of 5,000 people, which is really driving demand and placing pressure on contractors and suppliers to meet demand.

Builders, for example, are experiencing a shortage of pine for building frames.

The challenge right now is for builders and developers to keep prices affordable otherwise they could be killing the goose that laid the golden egg. They need to safeguard long-term housing affordability.

A lot of pressure is also coming from investors, who are looking for returns, but we don’t want investors to spoil the story for families trying to build their homes. It’s not healthy for anyone’s interests for prices to rise.

Meanwhile, I hope everyone has a happy and safe Christmas. Please drive safely and help us maintain the great advantages that Geelong and the Surf Coast enjoy.