Regional VIC Property Market Update June 2019

Geelong Property Updates

Looking back over our future predictions for 2019, it’s fair to say that Geelong’s property market has followed our initial thoughts in comparison to 2017 and 2018.

Geelong has seen some significant growth over recent years and although the growth cycle in most parts has come to an end, we are still not anticipating a significant decline in property prices compared to that seen in Melbourne and Sydney.

Properties initially thought would be snapped up by investors are taking longer to sell, often with vendors having to meet market expectations. The resulting effect is that days on market are now increasing with greater stock available.

It is not all doom and gloom however with a good number of sales occurring throughout the region. Latest CoreLogic data reveals that Geelong had recorded the highest regional clearance rates with 45.5% of properties sold at auction, despite declining auction volumes. Properties that represented good value for money either through affordability, location or recent renovation works and presented in prime condition appear to be selling above vendor expectations with multiple bidders.

One of the key surprises so far for 2019 has been at the top end of the market. A number of high-end properties have been transacting throughout the Geelong region, both on and off the market.

Initially, we predicted that this price point would stabilise and become stagnant due to tightening lending conditions as well as the cooler months slowing buyer enquiry, especially along the Surf Coast. However it appears that the top end is resilient and buyers are purchasing with confidence. Selling agents are reporting strong interest in properties north of one million dollars.

Examples of these include:

Speak with a Geelong Mortgage Broker today.

Mildura Property Updates

As the half time siren sounds in 2019, we can report that buyers are still active, with recent sales showing some value growth continuing throughout the first half of 2019.

A search of RPData records indicates the number of sales of houses in the Mildura postcode is running at around 50 to 55 per month, a slight reduction on the average 65 per month during the first part of 2018. Values still appear to be increasing slightly – we think at somewhere around 3% to 4% per annum – and selling periods are generally less than 45 days. Demand remains strongest for modern homes, with buyers showing a preference for homes that are less than 20 years old, although there are still a good number of sales of older homes occurring.

Finding evidence of recent re-sales is always a challenge, however, one example is 6 Felix Court, which has just sold for $351,500, after previously selling in late 2017 for $305,500. The presentation was slightly better this time around, however, the improvements were largely unchanged. There is also some evidence suggesting re-sales of houses in the $450,000 to $550,000 bracket have recorded lower growth rates over the past

six months, suggesting that while buyers are still active, the market is evenly balanced at this level. There have been noticeably fewer sales of prestige homes during 2019. It is not yet clear whether this is due to fewer properties in the $800,000 to $1.5 million bracket being put to the market, or whether buyers are being more cautious at this upper end of the market. Probably both factors are at work.