Greater Geelong suburbs offer gross rental yields higher than Melbourne median: HTW residential

Greater Geelong suburbs offer gross rental yields higher than Melbourne median: HTW residential
Greater Geelong suburbs offer gross rental yields higher than Melbourne median: HTW residential

Investing in Geelong has been a trend that many are beginning to follow, according to the latest Herron Todd White (HTW) residential report. 

The valuation firm took a look at the rental yields across the nation. 

The report notes that with Melbourne’s property market finally at ease leaving median house prices at an all-time high, Geelong has caught the eye of many investors for its value and unique growth opportunities.

Geelong boasts a number of the factors that make an area stick out as a place with high growth potential.

Some of these factors include large infrastructure projects currently underway, vacancy rates and rental yields that continue to increase and a population that is growing.

"In terms of yields, the vast majority of Geelong’s suburbs have a gross rental yield higher than that of the Melbourne median, which is 2.7%," the valuation firm said. 

Like Melbourne, Geelong also has its own array of estates being built around the city, with Armstrong Creek being an enticing new development with yields at 3.7%.

Geelong’s ongoing infrastructure advancements has lured a number of investors towards the town, the report noted. 

Just last year, an unexpectedly strong net rental yield led to investors from across the nation building an upscale 4.5 star apartment building with 110 apartments to be sold.

Each one of these apartments produced a net rental yield of between 6% and 8%, according to Core Logic.

"Demand for this type of development is high in Geelong because of the increasing numbers of overnight visitation, with a 15% spike in the year," the valuation firm said. 

In terms of residential areas, suburbs such as Bell Park, Belmont, Torquay and Curlewis are the ones to look out for.

"Curlewis in particular has performed in spectacular fashion over the past 12 months as it has seen median house prices increase in value by 13.23%," it said.

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Greater Geelong suburbs offer gross rental yields higher than Melbourne median: HTW residential

"To top things off, it has one of the highest yields amongst the entire district at just under 4%," the valuation firm stated. 

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Greater Geelong suburbs offer gross rental yields higher than Melbourne median: HTW residential

The 24-month growth in median house prices and sales numbers for Curlewis. Source: Core Logic.

Tags: 
Rental Yield Geelong

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