DEMAND is exceeding expectations for new and existing apartments in Geelong with new developments selling out and existing apartments selling above quoted price guides.
Every apartment in Geelong’s soon to be tallest building Miramar has sold, showing how strong the demand is for apartment living.
Demand may be strong for the new apartment developments popping up across central Geelong but existing apartments are still in high demand as well.
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McGrath, Geelong agent Jim Cross sold 601/120 Brougham St, Geelong to a Melbourne couple last year for $1.31 million, well above the asking range of $1.15 million to $1.25 million.
There was competition on the property but Ken Clark and Suzanne Deering knew it was something special the moment they walked through the door and spotted the view and by the time they walked into the loungeroom, they had decided they had to have it.
The mad Cats supporters had no plans to move to Geelong but couldn’t resist after spotting the property on realestate.com.au while visiting family in Warrnambool.
“I called the agent and organised an inspection and it sold itself,” Mr Clark said.
“There has not been one second of regret, it is a very well thought out design and we were so lucky to have found it.”
Mr Clark said they had looked at Geelong as a place to live when they retired 15 years ago but decided to stay in Melbourne and instead downsized from a five-bedroom house to a three-bedroom house.
Now they are in a two-bedroom apartment with a 180 degree view across Corio Bay from Cunningham Pier to Eastern Beach.
Mr Cross said the market was really strong for existing apartments that had views and were in a good position.
“The new apartment developments hasn’t put a lot of pressure on the existing market as a lot of existing properties are still on the waterfront in a prime position, they will always get strong interest because of that,” he said.
“Properties that don’t have a view are a bit more challenging to sell.”
He said some people also did not want to wait for the new developments to be completed, preferring something ready to move straight into.
According to 2016 census data from the Australian Bureau of Statistics 18.2 per cent of occupied dwellings in Geelong were flats or apartments, compared to 56.4 per cent of houses.
CoreLogic data shows demand for apartments in Geelong started about three years ago with the median unit price jumping from $452,750 in 2016 to $490,000 in 2017.
The median unit price has increased 10.2 per cent in the past year to $522,500, while houses have increased 3.5 per cent to $745,000.
Hodges, Geelong West agent Marcus Falconer said one of the reasons why there was so much demand for existing apartments was because they were very tightly held.
“They don’t come up very often so when we do get them they are incredibly popular,” Mr Falconer said.
He said buyers were wanting this style of living these days with about 70 per cent of buyers owner occupiers.
“It has turned a corner since five to 10 years ago, the market is wanting that style of living now,” he said.