GEELONG new land sales now make up 17 per cent of Melbourne’s growth areas market, with more blocks selling here than in the south-eastern suburbs.
RPM Real Estate Group director of communities Luke Kelly said the city enjoys a competitive advantage over most Melbourne developments because the blocks are more affordable and first-home buyers can access double the grant than if buying in Melbourne.
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More than 600 lots were sold in the three months to September, RPM Real Estate’s Residential Market Review showed.
Geelong sales made up 12 per cent of Melbourne’s growth areas early in 2017.
“It’s doing more sales than the south east of Melbourne. We need to keep the supply of stock to the market to keep those percentages up,” Mr Kelly said.
Geelong has a lifestyle and price advantage to many of Melbourne’s growth areas.,
“You make a saving of $50,000 straight off the bat when you move to Geelong (from Melbourne),” Mr Kelly said.
Only estates in Bacchus Marsh, Wallan and Melton South are cheaper than blocks in Geelong.
Increased competition with the new Austin estate opening in Lara underpinned a 17 per cent rise in supply and an 18 per cent jump in sales in the northern Geelong suburb.
The lot price in Lara lifted 1.5 per cent to $264,000.
Armstrong Creek was the biggest area with 259 sales for the quarter.
Though the rate of sales fell 19 per cent, buyer demand for available stock caused a 5 per cent price rise to $271,500 for a median lot.
Two more active estates opened on the Bellarine Peninsula, where prices jumped 11.5 per cent to $262,000. The area also had the largest blocks, which rise to a median 453sq m.