REIV data shows Geelong house prices reach a new high

Homebuyers wasted little time wiping away the impacts of COVID-19 lockdowns on the property market, with Geelong sellers profiting from the increasing demand.

The Real Estate Institute of Victoria tracked an annual 7.7 per cent bump in Greater Geelong’s median house price in its December quarter figures released on Monday.

The city’s median house price rose 2.3 per cent in the past three months to reach $614,000.

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And the Surf Coast Shire’s median house price closed in on $1m, rising 6 per cent in three months to $970,000.

Across regional Victoria, the median price rose 9.2 per cent — the best since 2003 — as Melbourne buyers made up for lost time once the city’s lockdown was lifted last October.

The REIV data comes as a new report from property analysts CoreLogic revealed Geelong was among nation’s most profitable property markets.

CoreLogic’s latest Pain & Gain report found 98.5 per cent of Geelong region property sales in the September quarter realised a profit compared to their previous sale price.

Only Ballarat had a higher rate, the report shows.

CoreLogic’s head of Australian research Eliza Owen said profitable sales increased more rapidly in regional areas, compared to capital cities, as more buyers looked to move to the coast.

“Coastal regional markets were particularly profitable for sellers, with profit-making sales representing 95 per cent of resales across six major coastal markets — Geelong, Illawarra, the Mid-North Coast, the Newcastle-Lake Macquarie region, Richmond-Tweed and the Sunshine Coast,” she said.

Ms Owen said the housing market is expected to improve further in the coming months.

“With record low mortgage rates, a faster than expected economic recovery and relative low cases of COVID-19, profitability is tipped to trend upwards over the coming months.”

Hodges, Geelong West agent Marcus Falconer said fear of missing out was prevalent among many buyers faced with fewer homes on the market than usual.

“We’re still faced with a real short supply of homes for sale and demand is comfortably outstripping supply so there is an element of urgency from buyers to get into the market,” he said.

“I think that the buoyancy and the strength in our market we’re going to see this year will certainly be unsurpassed.

“We’re just seeing the amount of people changing their life through the pandemic.

“And the amount of people returning to Geelong and who no longer need to head into the office or that need to only a few days per week and they’re choosing Geelong as a place to settle purely from what we have on offer.”

REIV president Leah Calnan said the market remained remarkably resilient in 2020, despite some dire predictions at the on-set of COVID-19.

“Certainly low interest rates and government incentives, including stamp duty concessions and first-home buyer grants added to buyer appetite for the December quarter, while volatility and uncertainty in the Australian equity market have secured property as a preferred investment option for Victorians.”