Desperate Melbourne homebuyers are fleeing the city for Geelong “gold mines” where $500,000 still buys a house.
Suburbs such as Norlane, Corio and Lara have emerged as the final frontier for first-home buyers priced out of Melbourne, with PropTrack data showing affordable areas are still drawing intense demand.
The shift comes as Melbourne’s auction market recorded a 65 per cent clearance rate, with 425 homes selling from 654 reported results from PropTrack, highlighting how competitive conditions remain for buyers trying to secure a foothold in the city.
RELATED: Byron Bay-inspired Brighton ‘Skyhome’ lists for $9.9mMelb buyers claw back $18k in auctions
Demon Salem facing big call for future home
M R Advocacy director and buyers agent Madeleine Roberts said she was seeing increasing interest in Geelong’s lower-priced suburbs as buyers searched for entry-level opportunities.
“Suburbs like Norlane, Corio and Lara are starting to attract attention because they’re still relatively affordable compared to Melbourne,” Ms Roberts said.
“As buyers get priced out of Melbourne’s traditional entry-level suburbs, they’re increasingly looking further out to find something within their budget.”
M R Advoacy director Madeleine Roberts – for herald sun real estate
Investors are also eyeing the coast, with $500,000 properties returning about $450 a week in rent and adding to the rush on Geelong’s cheapest houses.
Baseline Financial director Ari Levinson said Geelong’s price point was one of the biggest drawcards.
“When you look at Geelong, it’s still considerably more affordable than Melbourne,” Mr Levinson said.
“In suburbs like Norlane, Corio and Lara the median house price is often around the $500,000 to $600,000 range depending on the property.”
He said the affordability meant the suburbs were becoming one of the few remaining entry points for first-home buyers.
“For many buyers these areas are among the only realistic options left to enter the market,” he said.
5 Allister Court, Lara sold for $662,000
37 Harpur Road, Corio sold for $575,000
Mr Levinson said he believed the suburbs were beginning to benefit from gradual gentrification as affordability and proximity to key amenities attracted new residents.
“With the train you can get into Melbourne in roughly one hour and a bit, which makes them attractive for commuters,” he said.
Lower prices, solid rental returns and commuter-friendly train access are turning Geelong’s cheapest suburbs into a pressure valve for Melbourne buyers locked out at home.
Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox.
MORE: Late SeaChange star’s Melbourne home sells pre-auction
$500m ghost tower neighbour to Portelli ‘in limbo’
Melb’s insane 13 fireplace convict built mansion
david.bonaddio@news.com.au
English (US) · 