Maxwell Collins, Geelong agent Nick Lord said the data shows houses in Highton were under-valued and the best growth suburb to buy in. Picture: Mitch Bear
A HEAT map has tracked the results of a real estate ripple effect that’s taken hold in Geelong’s property market.
CoreLogic’s Mapping the Market tool has tracked the change in property values by suburb over the past five years, which has seen pockets of affordability shrink as values rise across the region.
The change is most stark in the north, where values around the city’s most desirable inner suburbs has lifted as buyers sought more affordable areas to break into the market.
The map shows that Church St, Geelong West is no longer to divide between expensive and cheap suburbs, as values increased north of this point.
It uses a beige to deep maroon colour scheme, the darker the colour, the higher the value.
CoreLogic’s Mapping the Market tool shows the Geelong region in 2014.
The strongest pockets were North Shore, Norlane and Corio, also remained the cheapest.
Closer to the city, Hamlyn Heights, Bell Park and Bell Post Hill values have risen more than 9 per cent annually.
Belmont is another standout suburb where values lifted almost 10 per cent annually over five years, while Highton was a more sedate 6.8 per cent.
Maxwell Collins, Geelong agent Nick Lord said the expansion of suburbs with higher values was obvious and showed the city was on track to double in value over 10 years.
But it also showed the best growth suburb to buy in and the most under-valued was Highton, he said.
CoreLogic’s Mapping the Market tool shows the Geelong region in 2019.
“We always see in any suburb the inner city suburbs would be more expensive and people would still be looking to live in those boundaries of the inner city but they cant afford it so they’ll push out.
“Herne Hill is a great example of that — Geelong West was very expensive, Manifold Heights was very expensive and then they looked at Herne Hill and realised that’s still really close to the all the amenities.
Buyers have looked in more affordable suburbs like Hamlyn Heights, pushing values in the past five years.
“It’s a bit of a wave effect as you move through Hamlyn Heights, Bell Park, Bell Post Hill as buyers see that’s still give value, they’ll jump in and it will lift the price.”
But Mr Lord said Melbourne buyers also helped lift values.
“Every time we see a surge of Melbourne buyers into the Geelong market it educates real estate agents and local Geelong people, challenging what we think is a better street or a better part of a suburb,” he said.
“Melbourne people pay an appropriate price for a property close to amenities where we would say that’s probably not as high land value as others, but they lift the value when they renovate the house and all of a sudden it becomes a nice pocket of that suburb.”
Herne Hill buyer Louise Darbyshire snapped up this house in 2019. Picture: Mark Wilson
CoreLogic analyst Cameron Kusher said the map provided a geographic perspective on the performance of the housing market.
“Geelong has seen strong growth in values over recent years (although it has slowed recently) as a result many suburbs in the region have seen values push higher, as a result affordability has reduced in these markets,” Mr Kusher said.
“More recently as many parts of Geelong have lost their affordability advantage compared to the outskirts of Melbourne, many buyers have looked to other regions close to Melbourne in which values have not shot up as substantially.”