GEELONG’S real estate market has turned on its head in the past 20 years as values have risen, new data shows.
The CoreLogic analysis shows that in 1998, more than 90 per cent of dwelling sales in Greater Geelong were for less than $200,000. In fact the median house price was $101,000 that year.
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But new figures shows that just 2.7 per cent of homes sold in 2018 were in that price bracket.
The median price hit $530,000 in 2018.
The analysis of the share of sales across six price points highlights the reduction in properties at the lower end of the market as values increased.
And million dollar-plus sales are more commonplace in Geelong today at nearly 6 per cent of the market.
CoreLogic analyst Cameron Kusher found the share of sales annually by price point over each five-year period from 1993 to 2018 shows an overwhelming majority of sales occurred below $200,000 in 1993 and 1998, compared to very little in 2018.
“Over time there has been a steady climb in the share of sales across the more expensive price points,” Mr Kusher said.
Sales of properties priced between $400,000 and $600,000 were the most prevalent over the year with 42 per cent in 2018, compared to a decade ago when that bracket represented just 12 per cent of sales.
Maxwell Collins, Geelong agent Eugene Carroll said there were so many buying groups active in that middle price bracket, allowing sellers to climb the property ladder.
“First-home buyers, even though they’re in the low-to-mid $400,000s, can afford that price point, and investors are looking at it to. You’ve got a big buyer base.”
He said buyers were getting more comfortable with paying $1 million in Geelong.
“It took a lot of time for people to get their head around it. $1 million was a big obstacle,” he said.
Newtown agent Dale Whitford said property was powerful as a long-term investment, especially for people who bought on average for $100,000 in 1998 for a place of residence.
“You’ve gone up more than five times in value in 20 years and you’ve enjoying where you live,” he said.
“It’s a good investment, and they’re not even coming from an investment point of view.
“If you’ve been smart enough, or had the funds available, if you’ve had more than one of those ticking along over time, you’re looking good.”
Harcourts, North Geelong agent Joe Grgic said a standard house on a full block under $300,000 was virtually disappeared in Geelong as the city’s popularity grew.
“We look at Geelong and we think it’s great. There are more people moving here and seeing the value and still have a great lifestyle.
“The biggest driver for any city is demand and we’re fortunate we have demand and it will continue,” he said.
ANNUAL SALES BY PRICE POINT, CITY OF GREATER GEELONG
|Median house price||
Percentage share of total sales for calendar year. Source: CoreLogic