Why investing in Geelong makes sound financial sense
City of Greater Geelong, which is Victoria’s second city is set to Outpoint Melbourne on Growth on the back of transforming into a dynamic city with great lifestyle thanks to economic diversification, affordability and location.
Geelong is probably where the Sunshine Coast was 2 short years ago on the growth curve
The City of Greater Geelong is Victoria’s busiest and strongest market. The state capital has been thriving over the past two years or so, but is gradually fading – while Geelong continues to gather momentum.
Consumers who equate research with reading newspapers will possibly have a negative perspective on Geelong, because media has focused on the closure of a couple of major businesses, most notably the Ford motor plant. The reality, however, is that positive events in the Geelong economy far out-weigh the impact of the Ford closure. The jobs to be lost at Ford are outnumbered by the ones being created in other ventures by at least 10 to one.
There are major events still to come in the Geelong economic story, spurring good performance in 2017. It’s a busy market, driven by its affordability relative to Melbourne, a strong local economy and a water-based lifestyle. Geelong currently ranks as one of the Top 5 markets in the nation, in terms of sales volumes and potential for price growth.
Meanwhile, just up the road, Melbourne has overtaken Sydney as the leader on price growth, according to most research sources. This makes sense, because Sydney has undoubtedly passed the peak while Melbourne is a little behind it in the growth cycle and still has some forward momentum.
The Melbourne market, in terms of sales volumes, has passed its peak too, but remains resilient and prices are still rising in many market sectors.
But the greatest impetus is now being found in the outlying areas where affordability, jobs nodes and good infrastructure are the key factors. Typical locations where this is occurring include the Epping precinct in the north, the Sunshine precinct in the west and the Casey LGA in the far south-east.
Back to the regions, where Bendigo, Ballarat and some of the lifestyle towns north of Melbourne – including those in the municipalities of Mitchell and the Macedon Ranges – all have their merits, but Geelong is undoubtedly No.1 location.
What is driving the growth in Geelong pushing up property values?
Employment is one of the main drivers with :
- New $277m Epworth Hospital which opened in July 2016
- TAC (Transport Accident Commission) moved to Geelong
- Worksafe Victoria moved to Geelong
- National Disability Insurance Agency moved to Geelong
Education is another driver :
- Deakin University and various University initiatives are also creating employment
- Both government and private schools offer excellent and renowned education attracting families
Lifestyle and Affordability :
- With Melbourne becoming too expensive families are moving to Geelong not only for new employment opportunities but also for lifestyle
- Where else can you live right on the water or travel 10 minutes down the road to be on an ocean-side beach
- A block of land with a home in the early to mid $400’s lends value and affordability to families who wish to reside close to where they want to live, work and play
One of the suburbs that has really healthy numbers is Armstrong Creek which is only 10 minutes to Geelong and 10 minutes to the Surf beaches. Offering upfront value plus wonderful potential for Capital Growth based on the Independent Reports.
Residex forecasts excellent Capital Growth for Armstrong Creek of 8% per annum over the next 5 years and 10% per annum over the next 8 years
According to the City of Greater Geelong the Armstrong Creek growth area is the largest continuous growth area in Victoria consisting of 2,500 hectares of develop-able land and is one of the largest growth fronts in the country.
- Armstrong Creek growth area will provide housing for between 55,000 to 65,000 people.
- Provide approximately 22,000 residential homes.
- Provide 22,000 jobs with a focus on high technology jobs and developing synergies with Deakin University.
Geelong is well serviced by both Bus and Rail with