Real estate investments never go out of style, and in 2022, Geelong is bringing in opportunities for the enthusiastic investor.
Key regional centres in Victoria have been featured as some of the most prolific property markets in Australia - and this has been the case for the past several years.
Geelong, in particular, has seen an exceptional price lift just last year, and most of the best suburbs to invest in Geelong have increased in price by more than 20%. Among some of the best growth suburbs are Belmont, Corio and St Albans Park, racking up the highest numbers by popular choice.
Additionally, other smaller towns in Regional Victoria have also been experiencing significant growth in property prices, with these increases reported from as early as August 2020. The trend, according to experts, could possibly be owing to the fact that Regional Victoria was already on an upward growth curve. As a result, many of the suburbs in Geelong had already been developing or maintaining the pace of development over multiple years by the time the pandemic hit.
Continuing our deeper dive into some of the best areas in Australia to invest, we analyse some of the best suburbs to invest in Geelong and why you should keep your eyes peeled on them this year.
Is Geelong a good place to buy an investment property?
With dramatic capital growth already being seen in locations spanning Regional Victoria, you may feel sceptical about being able to identify the markets with future growth potential in the near future. Real estate sources say that locations that have had consecutive years of more than 20% in price growth, may not be able to maintain that price. Even then, reports indicate that some of the most popular and promising suburbs in Geelong, still hold a lot of investment potential.
With that said, here’s a few good reasons why you should be considering Geelong for your next real estate investment.
- Several of the best suburbs in Geelong are still delivering an upward momentum, despite the fact that Geelong itself has been a real estate growth market for over three years.
- Property investors have enjoyed capital gains of about 5.65% over the course of the last 12 months in Geelong.
- Geelong has obtained a growth of 6.89% over a period of ten years in terms of median home prices.
- The median home price in Geelong is at $950,000 and the average rent is at $455 per week, which means that investors and property owners could earn a 2.5% increase in their gross rental yield.
Has this picked at your investors' curiosity? Keep reading to find out the best spots to put some money down in Geelong this year.
Where to invest in Geelong?
If those numbers have got you excited about investing in Geelong, hold on to your seats! We're about to go deeper and take a closer look at some of the top suburbs in the area, why you should invest in them and what you should know before putting your cash down!
Our top 6 picks for Geelong investment suburbs (in no particular order!) are:
One of the more affordable suburbs in Geelong for property buyers, Corio is a residential and industrial area, with great house prices and a rental yield as well. It is situated approximately about 9km north of the Geelong CBD and was known formerly as Cowie’s Creek.
As one the best rated growth suburbs in Geelong, Corio shows a lot of potential and comes with great infrastructure. A multitude of dining, leisure and entertainment venues make this location an ideal one, whether you would like to live in the locality, or rent out a property for income.
- The median home prices across Corio has seen a growth of about 7.07% over the past ten years.
- The median home price in Corio now at $440,000, the average rent falls at about $337.5.
- Property investors could potentially earn about 3.99% more in gross rental yield.
If you want to strike the perfect balance between Highton and Newtown, (albeit keeping things on the more cost-effective side), Belmont is the suburb to look at. Location wise, Belmont has easy access to Barwon River, Highton Village and the shopping strip located on Highton Street as well. It is also just a short, pleasant commute away into Central Geelong or Surf Coast - perfect for giving your rental listing a little boost!
A lot of the properties in the suburb have been updated and hold a solid balance between owner occupancy and rentals. There are quite a few developments currently happening in the suburb on bigger blocks, which offer a bunch of brand new investment opportunities. Geelong is also considered one of the best localities for residential purposes, making it a great location for you to invest in a property to rent out.
- Belmont ranks 348th in Victoria in terms of estimated capital gains experienced by property investors in the past 3 years.
- The median home price in the area is at $701,000 and the average rent at $420.
- Property owners can possibly earn about 3.12% increase in their gross rental yield.
- Property investors have enjoyed a 4.71% gain in Belmont thanks to the median home price increases in the recent past.
3) St Albans Park
This is a perfect location with close proximity to any of the three main shopping centres, the pool or even the local gym. With great amenities and a friendly neighbourhood, St Albans Park is also one of the safest surroundings, ideal for residential or business purposes.
There is a selection of primary schools to choose from nearby, making this suburb a good place to buy an investment property. Even though local traffic can be busy during certain times of the day, it’s a peaceful drive at other times and the gridlock is not constant.
- With the median home price of $495,000.
- St Albans Park is now experiencing rising rents and low vacancies, which is a good indication of an investment opportunity.
- Property owners in this suburb could see rental yields off up to $410 or more.
A pretty little town adorned with walkways and lakes, Lara is one of the best growth suburbs in Geelong for families with kids! With a number of great schools and easy access to public transport, this is a good area for investors looking to sink a bit more cash into a family sized home.
In terms of employment opportunities, Geelong CBD is right within reach while Melbourne is 45 minutes via train. Lara is perfect for planning day trips to nearby coastal towns, the Great Ocean Road, the Otways , Macedon ranges and Werribee among others. You would also have access to a number of shopping venues and the Corio mall is just a short 10 minute drive away.
Perhaps the quirky character of the town is what stands out the most, thanks to its hotpot of houses from the 80s, all the way to the present day. This beautiful amalgamation of architecture makes the location a unique one that has captured the past perfectly.
- There has been an upward trend in home prices in the area observed over the last 3 years, averaging 9.15% per annum.
- The average weekly rents on listings in Lara have reached $460, which indicates a 3.69% increase in returns of investment.
- Lara is also noted as one of the most active real estate markets in Victoria based on the number of transactions - which is around 22.33 per month on average.
Whittington is a cosy suburb in Geelong that is situated in proximity to all the perks required by modern day renters looking for a bit of peace and quiet. While Geelong CBD is just a 5 minute drive away, Whittington has its own shopping centres, great local schools and employment opportunities. The neighbourhood is known for its leafy spaces and great air quality, as well as bird life - perfect for attracting families with kids or work-from-home employees looking for a good work space.
This suburb is also a great long term investment - you could easily rent or sell your property in the future, should you choose to move.
- The median home price in Whittington now stands at $475,000.
- the average rent at $360.
- Property investors could look at earning an estimated 3.94% increase in gross rental yield.
Known to be an area with affordable real estate for both investors and renters, the suburb has safe neighbourhoods and conveniences like the Waurn Ponds Shopping Centre. The beautiful Coolabah Park also happens to be one of the major attractions in Grovedale which brings in a fair share of visitors to the area.
Grovedale has seen the price of property increase by about 20% during the period from 2016 – 2018.
- The median home prices in the area are at $626,750 and the average rent stands at $430.
- Property owners can earn 3.57% increase in the gross rental yield.
With just the right amount of industrial and residential potential, Grovedale is definitely among the best growth suburbs in Geelong for 2022, and the trend seems to be promising for years to come.
That wraps up our list of the best growth suburbs in Geelong but you’re probably still wondering how to decide what’s the right investment call for you. Here are a final few pointers on how you can make a prudent decision on your real estate investment.
Lets look at the growth potential in Geelong suburbs
When you check for regional property hotspots as well as the options for best growth suburbs in Geelong, looking for growth potential can take energy and time. Here are a few things though that you should consider.
- Look for unemployment below 4% and large infrastructure investments that are possibly on the cards.
- Renovations, developments and any signs of gentrification are a good indicator that the location is in demand.
- Follow real estate newsletters and other information sources that will help you stay updated. You can find a comprehensive list here.
- Analyse metrics such as for how long a property has been in the market, however remember that regional listings will have different averages as compared to city locations.
- If there are high auction clearance rates and sellers are opting for this method of sales, it could mean that there is demand, as well as a high price growth.
- Look at the rental yield activity. If that metric is increasing, there could be an increase in the population growth which is driving the demand for rental properties.
Geelong is definitely one of the most promising areas that you can invest in if you want to upgrade your real estate investments. Despite the pandemic, the demand for properties in Geelong are on the increase and the quality of life has not been negatively impacted. Whether you want a long term investment, or the perfect forever home, Geelong needs to be on your research list in 2022.
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Disclaimer: The views, information, or opinions expressed in this blog post are for general information purposes only and should not be relied upon. We have not taken into account specific situations, facts or circumstances, and no part of this blog post constitutes personal financial, legal, or tax advice to you. You should seek tax advice from your accountant, specific to your situation.