Geelong’s northern suburbs have delivered the best returns to homebuyers over the past decade, new research reveals.
The exclusive analysis of sales data from PropTrack shows the suburbs sharing the best average annual growth over the past 10 years, the strongest lift in median house price since 2019 and the best rental yields are centred around a clutch of suburbs in a corridor north of the CBD.
North Geelong, with is closest to the inner ring, delivered the best results.
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With a median house price a shade above $631,000, North Geelong has a combination of 8.7 per cent average annual growth, rounded out with a 27 per cent jump in value since 2019.
Geelong’s northern suburbs delivered some of the best returns to homebuyers.
The higher house prices have dented North Geelong’s rental returns, but the 3.54 per cent indicative yield was on par with nearby suburbs where the cost to purchase can be significantly higher.
Other suburbs sitting near the top of the rankings included Norlane and Corio and rental yields were above 4 per cent, where the median house price is below $500,000, along with Hamlyn Heights, Newcomb, Bell Post Hill and Armstrong Creek.
Central Geelong is the best performing suburb where the median house price is $1m or above.
The best suburbs for units were Newtown, Lara, Geelong West, Belmont and Bell Park.
20 Stubbs Ave, North Geelong, is listed for sale with price expectations from $749,000 to $799,000.
Veteran real estate agents say despite the stigma for parts of Geelong’s north, the corridor is blessed with popular and good schools, is close to the bay and benefits from better proximity to Melbourne via the ring road.
Harcourts, North Geelong agent Joe Grgic said suburbs like Bell Post Hill, Bell Park and North Geelong have also seen a lot of changes.
“There’s a lot more people who are buying into those areas and renovating, and they offer some great amenities, with quality schools, Kardinia International College, even now Western Heights has the sports academy which people are flocking to.
“Whether you’re buying or renting, you still want those services. There’s little shopping strips that are doing well – Vines Rd is a great example, or Hughes St in Bell Park.”
GEELONG: BEST BUYS FOR HOUSES
| Suburb | Median price | Average annual growth (10 years) | 5-year capital growth | Indicative gross rental yield |
| North Geelong | $631,250 | 8.7% | 27.5% | 3.54% |
| Norlane | $453,750 | 7.9% | 27.8% | 4.35% |
| Corio | $485,000 | 7.5% | 32.9% | 4.29% |
| Hamlyn Heights | $750,000 | 7.3% | 41.5% | 3.33% |
| Newcomb | $574,000 | 7.2% | 31.7% | 3.99% |
| Bell Post Hill | $650,000 | 7.1% | 34.0% | 3.84% |
| Armstrong Creek | $670,000 | 7.1% | 25.2% | 4.04% |
| Geelong | $1,000,000 | 6.9% | 38.4% | 2.86% |
| Herne Hill | $690,500 | 6.9% | 24.4% | 3.54% |
| Bell Park | $630,000 | 6.8% | 29.9% | 3.71% |
| Geelong West | $880,000 | 6.8% | 28.9% | 3.07% |
| Whittington | $500,000 | 6.8% | 26.6% | 4.37% |
| Newtown | $1,150,000 | 6.7% | 38.1% | 2.40% |
| Leopold | $677,600 | 6.4% | 32.9% | 3.76% |
| Grovedale | $666,000 | 6.4% | 31.7% | 3.90% |
| Belmont | $685,000 | 6.4% | 29.2% | 3.68% |
| Lara | $700,000 | 6.4% | 28.8% | 4.09% |
| Highton | $919,000 | 6.3% | 34.1% | 3.06% |
| Thomson | $522,500 | 6.1% | 27.4% | 4.28% |
| Wandana Heights | $998,000 | 6.0% | 40.6% | 3.33% |
| St Albans Park | $575,000 | 5.8% | 34.7% | 4.11% |
| East Geelong | $780,000 | 5.7% | 33.2% | 3.33% |
| Waurn Ponds | $790,000 | 5.6% | 25.4% | 3.47% |
Source: PropTrack. Figures for houses and units for 12 months to July, 2024. Suburbs ranked by average annual growth over 10 years, 5-year capital growth and indicative gross rental yield.
The four-bedroom townhouse at 42B Malcolm St, Bell Park, sold for $910,000 in May.
Mr Grgic said renovators that found these old homes are creating real return for themselves.
McGrath, Geelong agent Jasmin Jurkovic said there is increasing competition among homebuyers, while top prices in suburbs such as Bell Park show what buyers are willing to pay.
A four-bedroom townhouse in Malcolm St, Bell Park, sold for $910,000 in May, while a 20-year old, four-bedroom house in Prestige Ave achieved $1.05m in the same month.
Ms Jurkovic said suburbs such as Bell Post Hill, with a median house price around $650,000, offered a lot to homebuyers.
The four-bedroom house at 63-65 Prestige Ave, Bell Park, sold for $1.05m in May.
“There’s been a lot of competition, when you’re getting 14 groups at opens and the timeline for a sale is three to four weeks on the north side, compared to two or three months in Newtown, Manifold Heights, it says it all.”
However, Ms Jurkovic said most buyers don’t want to renovate given the higher cost of supplies and trades.
“People are happy to pay premium price in these pockets if the properties are renovated or updated. And units are really hot property in Bell Park at the moment, like a unit sells for $750,000.”
The three-bedroom house at 15 Talona Crescent, Corio, is listed for sale price $485,000 to $525,000 price expectations.
The agents said investors are back in the market, though they are highly selective given the increasing compliance requirements set for rental homes in Victoria.
“Obviously the taxes here seems to be a lot higher (than other states) and with compliance, what people would expect in return they’re not getting, so they’re getting out,” Mr Grgic said.
“But there’s other people who can see this real growth opportunities in Geelong.”
Family homes in good condition and on larger blocks are ideal for investors at the moment, he said.
The three-bedroom house at 68 Kinlock St, Bell Post Hill, sold in May for $643,000.
Ms Jurkovic said investors were buying with long-term gains in mind.
“They’re not short-term flips, they would like to sell in at least five to 10 years.
“I really do think you need to sit on something for about 10 years now as an investor to really get the benefits.”
GEELONG: BEST BUYERS FOR UNITS
| Suburb | Median price | Average annual price growth (10 years) | 5-year capital growth | Indicative gross rental yield |
| Newtown | $599,000 | 7.2% | 18.3% | 3.82% |
| Lara | $489,500 | 6.8% | 33.1% | 4.46% |
| Geelong West | $542,500 | 6.5% | 57.2% | 4.31% |
| Belmont | $533,750 | 6.2% | 29.6% | 4.19% |
| Bell Park | $532,500 | 5.9% | 29.9% | 4.20% |
| Leopold | $480,000 | 5.9% | 29.7% | 4.55% |
| Grovedale | $495,000 | 5.9% | 28.6% | 4.52% |
| Herne Hill | $391,500 | 5.8% | 38.8% | 4.38% |
| Highton | $520,000 | 5.8% | 20.9% | 4.15% |
| Hamlyn Heights | $526,500 | 5.4% | 13.2% | 4.44% |
| Newcomb | $463,000 | 5.3% | 29.7% | 4.38% |
| Geelong | $632,500 | 3.2% | 14.0% | 4.19% |
Source: PropTrack. Figures for houses and units for 12 months to July, 2024. Suburbs ranked by average annual growth over 10 years, 5-year capital growth and indicative gross rental yield.
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