Geelong suburbs where buyers are snapping up cheaper homes

Young homebuyers are making the most of the opportunity that a wider choice of more affordable homes on the market is providing in Geelong.

New figures for listings and sales reveal a growing proportion of homes are hitting in the market in the price brackets below the region’s $750,000 median house price, and buyers are increasingly snapping them up.

The CoreLogic sales data reveals 26 per cent of the homes sold in Geelong in the past three months were between $500,000 and $650,000 – the largest price bracket represented in the market.

The three-bedroom house at 19 Karana Ave, Grovedale, is listed for sale with price hopes from $585,000 to $615,000.

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And listings data from PropTrack show the number of homes in that bracket was the highest in two years.

First-home buyers were the biggest group taking advantage of the increase in more affordable properties for sale, which is driven in part by long-term investors selling out of ex-rental homes.

The most choice was in growth areas such as Armstrong Creek, Charlemont, Lara, Leopold and Mount Duneed, though vacant residential blocks and house and land packages were inflating listings.

But there’s still a significant number of existing houses and units on the market in those suburbs.

Middle-ring suburbs such as Belmont and Grovedale offer significant supply, along with Corio and Hamlyn Heights in the north.

The three-bedroom house at 57 Vistula Ave, Bell Park, is listed for sale with price hopes from $520,000 to $570,000.

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Grovedale was the biggest sales hotspot, with 44 recorded in the past three months.

Hayeswinckle director Michelle Winckle said plenty of people were looking to buy in that $600,000 to $700,000 bracket, but sellers still needed to be realistic in their expectations and listen to advice and feedback on price.

“There’s always going to be buyers in strong suburbs, so Highton, Grovedale and Belmont are pretty strong,” she said.

“If people are realistic, and trust the agent to do what we do, they’re going to get a good result. It’s all about meeting the market. If you meet the market, then the price can only go higher.”

Younger three-bedroom houses on smaller blocks in suburbs such as Armstrong Creek were plentiful, while ex-rental homes and older houses needing some renovation were turning heads in suburbs closer to the middle of Geelong.

The three-bedroom house at 32 Grey St, East Geelong, is listed for sale with price hopes from $549,000 to $599,000.

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Typical ex-rental properties provided an affordable entry where first-time buyers could simply move in, Whitford, Newtown agent Laurie McGovan said.

“There’s a lot that are happy to roll their sleeves up and do a little bit of work themselves, if that’s going to get them into a preferred location,” he said.

But there are plenty of homes where people can take their time, he said.

Typical ex-rental properties provided an affordable entry where first-time buyers could simply move in, Whitford, Newtown agent Laurie McGovan said.

“There’s a lot that are happy to roll their sleeves up and do a little bit of work themselves, if that’s going to get them into a preferred location,” he said.

But there are plenty of homes where people can take their time, he said

“Most landlords have kept the maintenance up to their properties and if something needs doing that, they’ll do it.

The three-bedroom house at 77A Iris Loop, Armstrong Creek, has been listed for sale with price hopes from $630,000 to $660,000.

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The three-bedroom house at 179 St Albans Rd, Thomson, is listed for sale with price hopes from $580,000 to $620,000.

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“So a lot of those properties are quite often ready to move in to.”

Buyers advocate Tony Slack said first-home buyers were keen on brick veneer houses in Geelong’s middle-ring or outer suburbs and were prepared to roll up their sleeves for cosmetic renovations.

“Brick seems to have more appeal in that price point. I think that comes down to maintenance. There may be less ongoing costs associated with a brick house opposed to a timber house,” Mr Slack said.

“They’re (often) more than happy to do a refurbishment, but preferably something that doesn’t need major work initially.”

Mr Slack said minimum standards introduced for rental properties several years ago ensured a lot of major work has been done in older houses.

“I’ve seen a lot of them have been rewired, the costly work has been completed if they were an ex-rental to meet the minimum standards required by the legislation,” he said.

But it was best to get a building inspection to avoid any surprises and risk problems associated with a low bank valuation, when it comes time to assess the cost of lenders mortgage insurance for those borrowing more than 80 per cent of their purchase price.

The two-bedroom house at 1 Kings Lane, Geelong West, has been listed for auction with price hopes from $580,000 to $620,000.

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The three-bedroom house at 179 St Albans Rd, Thomson, is listed for sale with price hopes from $580,000 to $620,000.

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Mr Slack said much higher choice in suburbs such as Armstrong Creek and Mount Duneed meant homes were often selling at below replacement cost, so people needed to be careful what they bought to ensure they can get capital growth, should they need to sell again in the short term.

“Something that is somewhat unique in that marketplace, whether it may be an architectural style, a little bit larger than most, or a custom-built home,” he said.

SUBURBS WITH THE MOST HOMES SELLING IN $500K-$650K BRACKET

Source: PropTrack, CoreLogic. * Houses and units sold in previous 3 months between $500,000 and $650,000, excluding vacant residential lots.^Houses and units listed for sale between $500K and $699K.