- 60,000 new homes will built over the next two decades, says m3property
- Median house price rose by 20% in the year to June
- Units rose by even more
Geelong, one of the fastest-growing cities in Australia, will see almost 60,000 new homes be built over the next 20 years, new research has found.
Luana Kenny, m3property national director for Residential Development, said the number of houses approved in Victoria during the year to April 2021 is the highest for any 12-month period since data began being collected in 1983.
“It was a different story for units and apartments where there were 19,038 units approved during the year to April 2021, decreasing by 22.6% from the 12 months ending April 2020,” she said.
“However Geelong has benefitted from strong population growth which has inflated by 2.22% per annum over the past ten years to reach almost 265,000 people.
“Approvals are expected to slow over the coming six months following the cessation of the application period for the HomeBuilder grant and more recently the land transfer duty waiver.”
Luana Kenny, m3property national director for Residential Development
Across Victoria, housing approvals have increased by 24.% to 44,879 approvals during the year to April 2021.
Median house prices in Geelong continue to grow with house prices rising by close to 20% over the year to June, reaching $695,000. Units rose over the same period by 21.5% to $532,000, according to m3property.
SQM Research data shows an even greater increase in asking prices for both houses and units within the Geelong postcode, which includes South Geelong and Newtown.
Geelong – 3220
[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]
“Geelong’s residential supply has become increasingly diverse with medium and high-density dwellings representing a higher proportion of total dwelling approvals,” said Ms Kenny.
“A historically low interest rate environment and solid population growth has resulted in total Geelong dwelling approvals increasing further over the current financial year.
Luana Kenny, m3property
“The value of residential dwelling approvals in Greater Geelong over the 2021 financial year to March has already surpassed the value of approvals over the 2020 financial year by 5.5%.”
Ms Kenny noted that the City of Geelong has become a popular residential, lifestyle and employment destination, which has been driven by its closeness to Melbourne, relative affordability and good infrastructure.
“Geelong also has an increasingly diverse economy with a range of current and emerging industry sectors such as construction, health, education, retail, accommodation and food services and advanced manufacturing,” she said.