Geelong’s blue-chip suburbs where lifestyle demand sent property prices soaring

The median value of homes in Bellbrae have growth 11-fold in 30 years.

The best blue-chip suburbs over the past 30 years reveals how homebuyers’ drive for lifestyle has transformed Geelong’s real estate landscape.

Geelong remains one of Australia’s fastest-growing cities as waves of people make the move to the region.

Exclusive PropTrack research reveals how that population shift is impacting the housing market, taking typical median home values from around $100,000 to close to $850,000.

The data calculates the how many times a suburb’s median dwelling price has multiplied over the past 30 years.

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It reveals how much the sea-change phenomenon has driven values in coastal towns, which accelerated during the Covid pandemic, and that how gentrification has transformed Geelong’s blue chip inner ring.

Bellbrae had the best growth, with the $2.122m median value 11.5 times higher than in 1995 when the median value was $184,000, followed by Barwon Heads, Anglesea and Jan Juc.

Geelong West was the best performed suburban area, with the $854,000 median home value 10.1 times higher than in 1995.

A typical Geelong West house cost just $84,000 in 1995.

REA Group economist Angus Moore said the forces driving price rises over the past 30 years were complex, but could be broadly categorised by changes in supply and demand.

The four-bedroom house at 27 French St, Geelong West, sold for $962,000.

He explained that the country was building far fewer homes relative to population growth than in the past and this was creating supply shortages across major city markets.

This change had coincided with a “structural” downward shift in interest rates over the period, which meant buyers had access to more debt and could spend more on housing, Mr Moore said.

“Rates used to be higher and more volatile,” Mr Moore said.

“Lower rates mean people can service larger mortgages. Prices can be structurally higher because rates are structurally lower and more stable than was true during the early 1990s.”

Home price growth since the 1990s has not matched rises in wages, Mr Moore added.

“Incomes have not grown tenfold over this period like home prices. Home price growth has far outstretched wages and was much higher than inflation.”

PropTrack economist Angus Moore.

Mr Moore said it was clear that lifestyle attractions and gentrification was driving prices in Geelong.

Development of key transport infrastructure, such as the Geelong Ring Road and Waurn Ponds train station had unlock property values by reducing travel time between Melbourne and areas south of Geelong.

The Geelong Ring Road freeway connection between the Surf Coast and Melbourne has attracted more commuters to leave the city. Picture: Alison Wynd

McCartney, Torquay agent Tim Carson said the ring road opened the potential for families to move to the coast and commute back to the city for work.

Few who have made the move, return to the city, he said.

“That has helped a lot so the accessibility for people to be able to commute back and forth to Melbourne and Geelong,” he said.

Mr Carson said improved schooling and increased health and wellbeing of living near the coast were attractions too.

“The big thing that’s really knitted is the health and wellbeing aspect (of living near the coast), like having Ironbark Basin Nature Trail at your doorstep and Bells Beach just down the bottom, he said.

Barwon Heads home values have climbed 11-fold in 30 years.

“To be able to grab your mountain bike can go for a ride to Anglesea and back.

“A lot of people enjoy growing their own vegetables and fruit trees and harvesting their own produce.

“And someone can now jump in the car on a good day and be at the Westgate in an hour and 15 minutes. It’s pretty appealing.”

Jellis Craig Geelong director Marcus Falconer said the research confirmed that living close to amenities such as Pakington St shopping strip, prestigious schools and hospitals were key drivers for inner city suburbs.

“It’s the age old rule that as long as you’re buying within a 5km radius of the business centre, and the major health precincts and schooling precincts in Geelong, you can never go wrong,” he said.

Suburbs hugging Geelong’s central business district have been among the best performed in the past 30 years.

“Geelong West in my opinion is the top suburb purely because you get everything – all the schooling, all the shopping, easy access to healthcare.

“You’ve got easy access certainly to public transport, more importantly the train station for commuters. Geelong West is the ultimate suburb for ticking all the boxes

“And Pakington St is a cosmopolitan melting pot.”

McGrath Geelong director David Cortous said Geelong West was growing from a lower base, given it was once an immigrant suburb, before a sustained period of gentrification.

But where once Geelong attracted people due to its affordability, lifestyle was the biggest attraction today.

“Geelong West was a pretty cheap market. A lot of people did not want to live there, but it was such a central location,” Mr Cortous said.

The cosmopolitan shopping strip on Pakington St is a big drawcard for homebuyers to Geelong West.

“Obviously Pakington St is running right through the middle of it, and with the way that’s evolved over the period and the period style homes just keep performing.”

Out-of-town buyers especially from Melbourne peaked at around 50 per cent of purchasers during the pandemic, Mr Cortous said, but still make up close to a quarter of buyers today.

“We still see a lot of families coming from down Melbourne that want to get in this Newtown area.

“They’re selling up there so they’ve got $2m to $2.5m budgets and they want to be in Newtown or in Geelong West. They want to be close to the private schools, the best primary schools. That demand hasn’t changed.”

GEELONG’S BEST PERFORMED SUBURBS OVER 30 YEARS

Source: PropTrack. Price growth factor is how many times the median home value has multiplied in 30 years. Home value includes both houses and units.

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