Geelong market buoyant as buyers shrug off rate concerns

It’s been a topsy-turvy 2024 for the Geelong property market with some home buyers still a little jittery on interest rates, and keeping their powder dry for a possible downward rate cycle.

Despite this, Geelong’s residential real estate market has shown remarkable resilience in 2024, maintaining price stability while adapting to shifting buyer preferences.

Despite fluctuations in other regions, Geelong continues to attract both local and interstate buyers, with its competitive affordability compared to Melbourne and significant infrastructure developments driving growth.

Throughout the year, Geelong’s property prices have remained steady according to agents.

Buxton Real Estate director Tony Moorfoot said that Geelong’s property market continues to exceed expectations.

“The combination of affordability, excellent infrastructure, and lifestyle appeal is driving sustained demand, particularly in family-friendly areas like Highton, Belmont, and Waurn Ponds,” Mr Moorfoot said.

“With ongoing developments in the region, we anticipate this trend to continue well into 2025.”

Buxton Real Estate reports that the median house price in Geelong is $767,000, marking a modest 2.5% increase from the previous year.

While other areas have experienced price volatility, Geelong has managed to maintain stability, bolstered by strong demand from both local residents and interstate buyers.

This consistency, combined with the region’s appeal, continues to support the market’s growth.

Geelong’s attractiveness has been further amplified by key infrastructure projects.

Notably, the $1.8 billion Princes Freeway upgrade has improved commuting times, making travel to Melbourne quicker and more convenient.

Agents are confident that this development strengthens Geelong’s position as an affordable yet well-connected alternative to city living, offering buyers the opportunity to enjoy spacious homes and a more relaxed lifestyle without sacrificing proximity to the city.

Another good piece of news for Geelong comes from the Regional Movers Index, which shows that Geelong is also emerging as a top destination for regional movers.

Greater Geelong holds second place as the most popular hotspot, with an 8.6% share of regional movers, driven by a solid annual growth rate of 49.7%.

The Regional Movers Index cites that Geelong being just an hour’s drive from Melbourne’s CBD on average makes it a highly desirable area for those seeking a lifestyle change, with accessibility to the city and the benefits of regional living.

This desirability would also have flow on effects to the Bellarine and Surf Coast areas which are attractive to many city based home buyers.

Increased demand for family homes and lifestyle properties was a prominent trend in 2024.

The shift towards remote and hybrid working models has driven buyers to seek properties with more space, including larger backyards and designated home office areas.

Buxton Real Estate has reported a 15% increase in inquiries for homes with office spaces in the past 12 months, as buyers look for more flexibility in their living arrangements, which has seen the demand for homes offering room for growth and functionality remaining strong.

Suburbs within the 3216 postcode, including Highton, Belmont, Grovedale, Waurn Ponds, and Marshall, have experienced notable growth in 2024.

These areas, known for their proximity to reputable schools, parks, and both the city and coast, have seen a population increase of 4.2% year-on-year.

The demand is driven by families seeking well-established communities, large block sizes, and convenient access to amenities.

Buxton reports that one of the most significant sales in Geelong this year was the sale of 208 Noble Street, Newtown, for $3.9 million.

 

Located in a highly desirable area near top schools, this property underscores the ongoing demand for premium homes in Geelong’s most sought-after locations.

The sale price represents a 12% increase over the median for Newtown, highlighting the strength of the high-end market in the region.

Looking ahead, Buxton sees that Geelong’s residential market is expected to maintain its momentum.

With continued infrastructure improvements and its growing appeal as a lifestyle destination, the region is poised for further growth.

Buxton Real Estate forecasts a 7-9% increase in property values over the next 12-18 months, driven by the continued demand for space, affordability, and proximity to Melbourne.