Key infrastructure projects predicted to boost Geelong's capital growth
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Jul 30, 2018
Key infrastructure projects predicted to boost Geelong's capital growth
Rail duplication between South Geelong and Waurn Ponds, and the Melbourne Airport rail link are set to boost capital growth in Geelong, according to forecasters.
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McGrath Geelong17 Orr Street, Geelong, sold by Jim Cross of McGrath Geelong, set for major capital growth. As featured on Luxury List.
Incredible capital growth over the past five years has put Geelong on the map and it appears the forecast is extremely positive for the Victorian port city, according to fresh analysis by RiskWise Property Research.
The property research firm found high population growth and a rise in infrastructure projects, leading to an improved economy and more jobs, have greatly increased the popularity of the area.
“Add to that it only takes an hour to drive to Melbourne and housing is significantly more affordable, it is ticking plenty of boxes for a lot of people with their eye on capital growth in the future,” RiskWise CEO Doron Peleg said.
One key piece of infrastructure will be delivered by the Federal Government thanks to a $50 million funding boost to help deliver the Geelong rail duplication between South Geelong and Waurn Ponds train stations.
17 Orr Street, Geelong, sold by Jim Cross of McGrath Geelong, set for major capital growth. As featured on Luxury List.
The Victorian State Government has also directed $50 million to investigate fast rail between Geelong and Melbourne, as part of the Melbourne Airport Link, to be delivered within 10 to 15 years.
It all adds up to an economic windfall for the region, with more employment attracting more residents to the area, according to recent research by Seek.
“And this, in turn, has seen capital growth in the past five years explode,” Mr Peleg said, “with the forecast also looking good for future capital growth.”
He says that compared to Melbourne, Geelong offers greater value for money and more affordability.
“Given its proximity to Melbourne, it is becoming very popular with those wanting a great lifestyle and better housing options with more value for money - and they are still within a comfortable distance from the CBD to commute to work,” he said.
Agents in Geelong are reportedly seeing a growing number of enquiries coming from Melbourne, with first-home buyers lured to more affordable homes and the quieter lifestyle, and investors tracking down higher yields.
"They probably make up 25 per cent of our enquiries," Peter Fort an agent with Witford Newtown, who specialises in property within 5km of Geelong's CBD told WILLIAMS MEDIA.
"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.
"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.
REIV President Richard Simpson also notes more people are considering buying in regional Victoria.
“Whether for reasons of housing price or a change in lifestyle, more prospective buyers are willing to look to regional Victoria to purchase. The possibilities of better transport connections with Melbourne now make that option even more palatable," Simpson told WILLIAMS MEDIA.
17 Orr Street, Geelong, sold by Jim Cross of McGrath Geelong, set for major capital growth. As featured on Luxury List.
Tim Lawless, head of research at CoreLogic, tells WILLIAMS MEDIA regional areas of Melbourne have benefitted from a 'demand spillover'.
“Markets such as Geelong, the Capital Region and Ballarat, have each benefitted from a spillover of demand emanating from the more expensive and often more congested metropolitan areas of Melbourne and Canberra," Lawless said.
The median house price for Geelong is only $576,118 compared to $836,122 for Greater Melbourne.
Apartments in Geelong sit at around $403,408 compared with $552,941 in the Greater Melbourne area.
“This means you can buy a house in Geelong for around the same price that you could buy a unit in Greater Melbourne. It represents excellent value for money,” Peleg said.
“And we believe it will only get more popular in the next few years, thereby presenting projected solid capital growth.”
Related reading:
First-home buyers concession a 'boon' in regional Melbourne
Savvy homeowners cash in on high capital growth suburbs in Brisbane
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