The fundamentals in Geelong are taking hold

 

Geelong, Victoria’s second-largest city, meets every benchmark of a region that’s about to take off. It has a rapidly-growing population with large-scale infrastructure improvements, including expanded railways and upgrades to the Princes Highway and Great Ocean Roads. Government and corporate bodies are relocating to Geelong, making it an employment hub.

The bayside city is itself a revitalised hub with excellent amenity. It’s well-serviced with established schools, an upgraded hospital and a university. With nearby beach resorts, wineries and other tourist attractions, it’s an increasingly desirable place to live. Expanded sporting facilities include the Kardinia Park stadium, which enjoys growing support for the Geelong football team.

Suburbs and regional cities on the cusp of gentrification tend to have higher-than-average rental yields and long-term capital gains. Another sign that marks Geelong as a nascent hot-spot is supply-scarcity and increasing demand. Properties are selling faster, with more buyer-competition, indicating that values are set to rise.

Price-sensitive buyers can acquire an established Geelong house from around $400,000, and anticipate attractive net rental yields of up to 5 per cent, with the confidence that housing (and land value alone) are set to increase in the coming years.

 

Until next week,

Jock Bing