Agents in Geelong are seeing growing numbers of enquiries coming from Melbourne, with first-home buyers lured to more affordable homes and the quieter lifestyle, and investors tracking down higher yields.

The shift in focus to the regional town is seeing prices in many suburbs recording double-digit growth.

Geelong's top growth suburbs

Source: REIV. 

"More and more we're getting a huge influx (of enquiries) from Melbourne," Peter Fort, of Whitford - Newtown, told SCHWARTZWILLIAMS. 

Melbourne buyers making up 25% of enquiries

"They probably make up 25 per cent of our enquiries," said Fort, who specialises in property within 5km of Geelong's CBD. 

Many from Melbourne are selling up and moving to Geelong to be mortgage free, he said.

With the city only 55 minutes from Melbourne, many of those moving to Geelong still work in Melbourne, he said.

There are plenty of jobs in Geelong, said Fort, with strong health and education sectors. Buyers are also attracted to the lifestyle benefits of big blocks of land and proximity to "arguably some of the best beaches in the state", said Fort.

A good entry point for first-home buyers

Chari Emirzade of Barry Plant sees a similar theme to Fort in Geelong.

Emirzade, who specialises in the suburbs of Corio and Norlane, which are south of the CBD, told SCHWARTZWILLIAMS, "The market has been amazing."

"Prices have gone up. Days on market has gone from sometimes 120 days now to some properties selling within a week," he said.

"Everyone's just trying to secure a property before prices go up," he said.

Last financial year Emirzade made 107 sales.

Emirzade said about 50 per cent of his buyers are first-home buyers and 50 per cent are investors.

In the suburbs he focuses on, "everyone's trying to get a big block," he said.

Corio and Lorlane are good entry-point suburbs, said Emirzade. With solid homes on large blocks that can be subdivided, subject to council approval.

Yields are around 5-7 per cent said Emirzade.

Properties that were selling for $280,000 a year ago are now selling for $350,000, said Emirzade. The median house price for Greater Geelong is $475,000, and 8.7 per cent in the last 12 months.

Around the markets last week

A total of 2,239 homes went to auction last week; the largest number of auctions since the first week of June. The preliminary auction clearance rate was 71.1 per cent, up from last week’s final results of 69.8 per cent.

Sydney’s preliminary clearance rate increased to 71.6 per cent, according to CoreLogic.

John Cunningham, president of the REINSW, told SCHWARTZWILLIAMS, "The consistency of the Sydney market proved itself true again this past weekend with steady clearance rates again around the 70% mark."

"Volumes were up and buyers were kept busy with large numbers of new listings hitting the market," he said.

Agents reported a large percentage of properties sold before auction, said Cunningham, and properties passed in last week were generally sold during the week, he said.

"One interesting observation from auctioneers is the the number of auctions receiving long bidding runs and buyers trying to get the bidding down to lower increments very early into the auctions," said Cunningham. 

"On the flip side there are many buyers agents going in with strong opening bids sometimes at over the reserve price to attempt a psych out other bidders strategy," he said.

"Every trick in the book is being thrown at auctioneers."

REIV President Joseph Walton told SCHWARTZWILLIAMS 836 auctions were held last week in Melbourne with a preliminary clearance rate of 77 per cent recorded. Both auction volumes and sales were down on the same period last year, when 948 homes went to auction and 78 per cent sold, he said.

One notable sale during the week was a tennis court in Toorak, which sold for $7.8 million at auction. The 16 Stradbroke Ave land is the most expensive residential land in Toorak ever recorded at $7,805,000 for only 773 sqm.

The previous record was for most expensive sale for land below 1,000 sqm was held by 9 Towers Rd for $5,555,000 in 2006, which was then built into one of the most expensive houses in Victoria.

To view properties currently for sale on Luxury List in Geelong click here.

Read more about real estate in regional towns:

Twenty per cent of Newcastle sales from Sydney buyers: PRDnationwide

Pilbara region showing signs of recovery: REIWA

Regional NSW taking off