Area Specialist Geelong City August Market Update

1. Geelong: A Buyer’s Market Amid Affordability Pressures Geelong’s property market, like much of regional Victoria, has experienced a downturn, with house prices declining 1.71% in the past three months. However, this offers a unique opportunity for first-time buyers. The region’s affordability pressures have been slightly alleviated by falling prices and incentives from developers, making it an attractive market for young buyers looking for turnkey properties or homes where they can add value. Additionally, government schemes, family assistance, and rebates are helping many break into the market, despite rising interest rates.

2. Regional Victoria Offers Solid Returns for Investors Outside of Melbourne, regional areas such as Shepparton are becoming hotspots for savvy investors and first-time buyers. Investor activity has increased in these areas as millennials, particularly "rent-vesters," look to capitalise on the rental boom while living in desirable locations. Regional areas provide attractive rental returns, driven by strong demand and a growing population. Despite the challenges posed by Victoria's rental reforms and taxes, the long-term investment potential in these areas remains strong, making them a compelling option for investors looking for more affordable alternatives to Melbourne.

3. Melbourne's Housing Market Set for a Comeback While Melbourne's property values have lagged behind other major cities in recent years, it presents a window of opportunity for strategic investors. The housing market is poised for recovery, with significant "inbuilt equity" due to undervalued properties. Melbourne’s median house prices are approximately 41% cheaper than Sydney’s, marking the largest price gap in over two decades. This affordability, combined with Melbourne's long-term fundamentals of strong population growth, a robust economy, and new infrastructure projects, positions it for growth. Smart investors should focus on gentrifying suburbs, where wage growth and demand for family-friendly homes will continue to drive price appreciation.