Geelong prices teeing off early

Geelong prices teeing off early
Geelong prices teeing off early

 

As someone allegedly knows something about property, I have to confess I didn't participate in Melbourne's property market through its recent stellar run, having been focused on Sydney, and more lately Brisbane. 

 

At least I won't miss out on Geelong, though.

 

Geelong had always looked to be a likely contender for the ripple effect from Melbourne, being located less than 50 miles from the capital, and being a generally good city in its own right.

 

And then the Labor government more or less nailed it on by announcing a series of measures to stimulate the market.

 

I broke a golden rule of thumb when discussing possible price impacts here when I estimated that median house prices in the city could feasibly rise by 20 to 30 per cent by 2020 (never use numbers; they always go for the numbers...).

 

Somehow, that became a median price of $600,000 ("it's not hard to envision prices in Geelong moving 20 to 30 percent higher by June 2020, particularly in the sub-$600,000 bracket").

 

Anyhoo, the point was that prices could rise as a result of the stimulatory measures, not least because the new legislation doesn't take full effect for months, affording opportunists a free kick at buying before 1 July. 

 

And it looks like prices are teeing off already.

 

Last weekend the auction clearance rate in Geelong moved above 90 percent, the highest regional or non-capital city clearance rate in the country.

 

And there are now regular stories of street records being smoked.

 

This weekend a house that last sold for $310,000 in 2009 sold for an astonishing $836,000 at auction. 

 

It looks like a rocket has been put under house prices in Geelong West.   

Click to enlarge

Geelong prices teeing off early 

All the hallmarks of a nascent boom.

PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

His latest book is Four Green Houses and a Red Hotel.

 

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

Tags: 
Geelong Residential Market

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