Strong sales cement Geelong’s growth market status

THE Geelong region’s strong employment growth and expanding population are continuing to drive demand for residential land, with new research showing the market remains one of Victoria’s strongest-performing growth areas.

With the region’s population now exceeding 300,000 and annual job growth averaging about 4.5 per cent over the past five years – well above the Victorian average of 0.7 per cent – Geelong is attracting both residents and investment.

Recent research from Colliers found residential land sales in Greater Geelong strengthened during the first quarter of 2026, with buyer confidence continuing to improve despite ongoing affordability pressures.

Land sales averaged about 606 lots a month across the broader market during the quarter, while Greater Geelong recorded 113 sales in the latest reporting period, slightly above its 12-month average.

Colliers residential research manager Hoang Vo-Tran said sales momentum had continued to build, with Greater Geelong outperforming many metropolitan and regional markets.

“Average sales over the past nine months have exceeded 300 lots per quarter, while incentive levels have remained broadly consistent over the past year,” Vo-Tran said.

“This indicates a stabilising market where improved absorption is driving activity, rather than price escalation.”

Incentives remain an important feature of the market, helping support affordability without significantly affecting underlying land values.

Titled lots are attracting rebates of up to $25,000, while untitled lots commonly offer incentives of about $10,000.

Greater Geelong accounted for 15 per cent of combined Melbourne and Geelong land sales during the reporting period, above its long-term average share of 13 per cent.

While median land prices have remained relatively stable, buyer preferences are shifting towards smaller and more affordable lots.

The median price of available stock sits at $425,950 on a median lot size of 448sqm. But recent sales recorded a lower median price of $403,000 on smaller average lot sizes of 420sqm.

Vo-Tran said the trend reflected ongoing affordability challenges and tighter borrowing capacity.

“Nearly half of all lots sold in Greater Geelong last quarter were under 400sqm, highlighting how developers are adjusting product to meet buyer demand,” she said.

Colliers residential land marketing national director Terry Portelli said the market was benefiting from strong enquiry levels, particularly from owner-occupiers seeking value and long-term certainty.

“Geelong offers a compelling proposition compared to Melbourne’s growth areas, with better-established communities, strong transport connections and pricing that remains accessible for a broad range of buyers,” he said.

“The stability in prices, combined with consistent sales volumes, is exactly what you want to see at this stage of the cycle. It creates confidence for buyers, developers and the broader market.”

Colliers Geelong senior executive Chris Nanni said ongoing investment in infrastructure, employment precincts and growth areas such as Armstrong Creek was helping cement Geelong’s position as a genuine live-work destination.

“Geelong’s growth is being underpinned by sustained investment across commercial precincts, major infrastructure and new employment centres, positioning it as Australia’s fastest-growing regional city,” he said.

“That depth of investment is driving confidence across the market, supporting business expansion and continuing to attract capital, skilled workers and residents to Geelong and its surrounding suburbs.”