3 Chalon Court, Highton, sold for $1.66m two days before Christmas.
Geelong home values climbed $23,000 over the past year as the region’s property market continued to recover.
The latest PropTrack Home Price Index reveals a 3.04 per cent rise in the median dwelling value, which now sits at $757,000.
Houses gained $25,000, or 3.21 per cent, over 12 months to hit a median value of $793,000.
The unit market ended the year on a particularly strong note, with values jumping more than $7000 to $584,000 in the December quarter.
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REA Group senior economist Anne Flaherty said national home prices held relatively steady in December, increasing by 0.1 per cent.
Regional Victoria outperformed Melbourne, which dipped slightly, in a trend echoed around the country.
Ms Flaherty said the Federal Government’s 5 per cent Deposit Scheme would likely drive further price growth in the new year by increasing demand, particularly at the more affordable end of the market.
“Home prices are predicted to head to new highs in 2026, however the pace of growth is expected to slow,” she said.
REA Group senior economist Anne Flaherty.
This four-bedroom residence at 12 Frank St, Newtown, sold for $1.82m in late December.
“Price growth in 2025 was supported by three rate cuts. This year, no further cuts are expected, and there is a possibility rates could rise if inflation persists.
“Counteracting this headwind, however, is limited new housing supply and persistent demand.”
Ray White, Highton agent Ben Powe said the return of investors to affordable Geelong markets had helped push prices up.
“This is by the far the best market we have seen since the end of the boom in 2021, finally house prices are above those levels,” Mr Powe said.
First homebuyers and interstate investors competed for 68 Moruya Drive, Grovedale, which sold for $820,000. It had been listed with price hopes from $699,000 to $709,000.
“I do a lot in Grovedale and I reckon Grovedale overnight went up 15-20 per cent, largely due to buyers advocates from all over Australia purchasing for investor clients.
“Anything under $850,000 seems to be flying if it’s on a decent block in rentable condition in places like Grovedale, Belmont and Highton.”
He estimated 50 per cent of properties in Grovedale were selling to buyers’ advocates, who were attracted to nearby amenities, including Waurn Ponds train station and shopping centre and Deakin University.
“They are for most part pushing out first home buyers and paying big dollars,” he said.
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