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Geelong property ranks high among profitable suburbs
SUBURBS across the Geelong region are among the most profitable in regional Victoria, new figures show.
Research from RP Data shows nine Geelong suburbs recorded profits for 100 per cent of repeat house sales in the past 12 months.
Grovedale recorded the highest number of repeat sales in the state’s regional top 50, with 97 per cent of the 158 houses selling above their previous sale price.
Units in Colac, Drysdale, Manifold Heights, Ocean Grove, Point Lonsdale and Whittington also recorded a perfect profit record.
RP Data Victoria housing market specialist Robert Larocca said the figures confirmed that buying in Geelong’s real estate market was a good investment in the medium to long-term.
He said the disparity in price points of the top 10 showed that buyers did not have to buy in expensive suburbs to see excellent returns.
“The vast majority of home owners do make profits on their purchase as long as they hold it for between nine to 12 years,” he said.
“When the market does vary over any given year, people worry about what it means for them and the home they bought,” Mr Larocca said. “If you take a medium to long-term view, you’ll see that vast majority of people will gain a profit on their initial purchase.
“Geelong is coming up quite high in those tables across Victoria, which shows that it does have quite a strong property market compared with non-metropolitan areas in the state. Just because most people are able to buy in at lower price point doesn’t meant they are going to get a worse outcome.”
“While properties outside of Melbourne city appreciate at a slower rate, they are more stable and less volatile.”
Many suburbs in the 3216 postcode were high on the list, no surprise to Hayeswinckle AGENT managing director Daniel Hayes.
“The amenities in (postcode) 3216 are great _ it’s in Victoria’s second-biggest city, with access to the ring road and plenty of quality schools,” Mr Hayes said.
Despite the area’s high growth, he said it was still affordable.
“The whole area has come alive and ticks a lot of boxes, particularly for families.”
“That said, it’s not over-priced for first-home buyers at all.
“Astute buyers can still buy a run-down weatherboard home for $350,000, renovate it and potentially make a profit.”
On the Bellarine Peninsula, Queenscliff also recorded 100 per cent of profit-making sales and has the region’s longest hold period, with residents staying in their homes for an average of 15.4 years.
RT Bellarine agent Peter Cordner said the results could be deceiving in the quiet Queenscliff market and predicts a telling summer season ahead.
“In Queenscliff, some properties won’t sell because they’re far too expensive, therefore making the market look good,” he said.
“With the recession and election, the market has not been that great overall, despite rates going down it hasn’t created any mad activity here.
“We do sometimes get the runaway auction over summer this summer will give us an indication in a way of where the market is going.”
Highest proportion of profit making sales: Regional units
(Rank, suburb, no of repeat sales, % profit making sales, median value)
1 Queenscliff 15 100% $710,672
2 Winchelsea 2 19 100% $255,343
3 Bell Park 3 46 100% $318,978
4 Marshall 4 11 100% $335,823
5 Wandana Heights 5 25 100% $561,203
6 Waurn Ponds 6 24 100% $458,398
7 Manifold Heights 7 39 100% $472,878
8 Breakwater 8 11 100% $250,796
9 South Geelong 9 10 100% $419,670
36 East Geelong 36 56 98% $413,342
Source: RP Data
Article Source: Geelong Advertiser – Lifestyle (http://www.geelongadvertiser.com.au/lifestyle/)