New data reveals the Geelong suburbs where purchasing a unit or townhouse makes most sense for budget-conscious buyers.
The PropTrack figures detail the suburbs with the widest disparity between median house and unit prices are centred around Geelong’s inner west, with a $912,000 difference between median house and unit prices in Manifold Heights.
The disparity is more than $600,000 in Newtown, $400,000 in Geelong West and almost $320,000 in Herne Hill.
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The three-bedroom townhouse at 14A Sydenham Ave, Manifold Heights, sold recently for $825,000.
The two-bedroom unit at 4/2 Breguet St, Manifold Heights, is selling with price hopes from $409,000 to $449,000.
There is an almost $350,000 gap between median house and unit prices in Highton, the analysis shows.
Geelong buyers advocate Tony Slack said there’s no real surprise given the string of recent top-end sales in Manifold Heights.
“We’ve probably seen more high end sales in Manifold Heights in the last couple of years than we have for many years,” he said.
The price difference is widened by a single dwelling covenant holding back development in Manifold Heights where there’s a larger proportion of older, one-bedroom units. Smaller units are also prevalent in Herne Hill.
Mr Slack said buying in a spot where units are not in high concentration supports the value for a purchaser.
The two-bedroom unit at 1/13 Ashbourne St, Herne Hill, sold recently for $550,000.
The two-bedroom townhouse at 2/27-29 Marlo St, Hamlyn Heights, sold recently for $528,500.
“When you go into Manifold Heights, or Newtown, or Highton to some degree, it’s unlikely many of these properties are going to be knocked down for units or townhouses because there’s too much value in the building to justify doing that,” he said.
“That gives great peace of mind that to buy into an area, if you’re wanting a freestanding home, you’re going to be talking 50 per cent more (money) at least.”
Bigger unit opportunities that are in demand, Maxwell Collins Geelong director Nick Lord said.
“In places like Manifold Heights and Geelong West, they don’t make units to the quality that they make in other suburbs so they’re a rarity,” Mr Lord said.
“We’ve sold one recently in Sydenham Ave and it went extremely well exactly for that reason – there’s just a lack of nice, comfortable, three-bedroom, two-bathroom, double garage in a nice location.”
The three-bedroom townhouse at 11a Addis St, Geelong West, sold recently for $920,000.
The three-bedroom unit at 6/9-11 Helms St, Newcomb, sold recently for $524,000.
Mr Lord said the gap was wider in “tier one” suburbs where higher end homes are far more expensive.
“When we go into a tier two or tier three suburbs, the disparity between the top end – $650,000 – down to a unit is not as not as great.”
But there can be a cap to growth for units in cheaper suburbs.
“If you’re getting too close to the value of a house, the buyers are going to see greater value to buy a house in that area.”
First-home buyers and downsizers are the key groups buying units and townhouses, with affordability and location the key drivers for people keen to stay within the inner suburbs with lots of amenities.
“Definitely more first-home buyers trying to get into the market are making that compromise on land to get a desired location,” Mr Slack said.
“In more instances than not, location is the last thing they’re prepared to compromise on.”
Many first-time buyers are prepared to forego buying a more expensive house if they’ve got a chance to buy in their preferred area.
The two-bedroom townhouse at 1/7 Urana St, Newtown, sold recently for $622,500.
The two-bedroom unit at 2/230 Aberdeen St, Manifold Heights, is selling with price hopes from $495,000 to $544,500.
“They’re mainly looking for location – it drives everything, and space and car accommodation is a large factor,” Mr Lord said.
“It’s a key personal preference but if they’re downsizing from a Newtown or a Manifold Heights house and they’ve got two cars. Moving to a smaller unit, that’ll be the focus for them.”
Hayeswinckle East Geelong director Tiffany Simpson said the ability to reap higher rental yields from units and townhouses is attracting investors to units.
“Often investors are more set on land size but the yield of a unit or a townhouse can often be similar with less maintenance,” Ms Simpson said.
Newer townhouses also offer depreciation benefits that increase dividends in the first seven years.
The three-bedroom townhouse at 1/86 Vines Rd, Hamlyn Heights, is selling with price hopes from $650,000 to $690,000.
The two-bedroom unit at 6/450 Ryrie St, East Geelong, is selling with price hopes from $400,000 to $440,000.
Ms Simpson said buyers can also lower their eyes from a three to two-bedroom unit if it means buying in a preferred lcoation.
“Whether it is Grovedale, Belmont or even Noble St, Newtown where I’ve got a two-bedder that a first-home buyer has secured. They may get a three-bedroom unit in another suburb, but it’s not a real deterrent for a fist-time buyer.”
Mr Slack said the downside to units is the shared costs of maintaining common property, such as shared driveways, and the costs associated with the owners corporation.
“There’s always going to be privacy and noise issues that come with multi dwelling complexes and then there’s the shared and common areas you need to be mindful of.”
BIGGEST PRICE GAP BETWEEN HOUSES AND UNITS:
| Suburb | Median unit price | Percentage difference | Price gap between houses and units |
| Manifold Heights | $363,000 | 71.5% | $912,000 |
| Newtown | $591,250 | 51.7% | $633,750 |
| Geelong West | $452,500 | 47.3% | $406,500 |
| Herne Hill | $375,000 | 46.1% | $320,500 |
| Highton | $514,250 | 40.3% | $346,750 |
| Bell Post Hill | $432,500 | 36.2% | $245,000 |
| Lara | $450,000 | 34.8% | $240,000 |
| East Geelong | $545,000 | 29.2% | $225,000 |
| Marshall | $447,500 | 29.0% | $182,500 |
| Whittington | $367,500 | 28.3% | $145,000 |
| Drysdale | $546,250 | 27.2% | $203,750 |
| Barwon Heads | $1,030,000 | 26.7% | $375,000 |
| Grovedale | $498,750 | 25.2% | $168,250 |
| Hamlyn Heights | $525,000 | 25.0% | $175,000 |
| Belmont | $529,000 | 24.2% | $168,500 |
| Leopold | $500,000 | 23.7% | $155,000 |
| Ocean Grove | $755,000 | 22.6% | $220,000 |
| Corio | $380,000 | 22.4% | $110,000 |
| St Albans Park | $457,500 | 21.8% | $127,500 |
| St Leonards | $566,000 | 21.4% | $154,000 |
| Torquay | $965,000 | 17.5% | $205,000 |
| Bell Park | $507,000 | 16.9% | $103,000 |
| Norlane | $377,500 | 16.8% | $76,000 |
| Newcomb | $472,500 | 14.1% | $77,500 |
| Geelong | $612,500 | 10.9% | $107,500 |
| Portarlington | $767,500 | 10.0% | $85,000 |
Source: PropTrack. Median house and unit prices for 12 months to March, 2025. Percentage difference and price gap is betweenmedian price for houses and units.
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