Geelong and Bendigo suburbs primed for growth
Investors grab bargains in regional Victoria. A number of affordable suburbs across regional Victoria are tipped to shine in 2024.
The property researcher expected these suburbs to experience significant capital growth due to rising demand from entry-level buyers wanting more bang for their buck.
Corio in Geelong was a potential-packed haven, according to Barry Plant Geelong director Chari Emirzade.
“It’s going forward,” he said.
“And as interest rates continue to rise and buying power falls, buyers are heading here for affordable homes.”
In Corio, the median price is $480,000 for houses and $390,000 for units, according to realestate.com.au.
Houses lease for $387 per week with an annual rental yield of 4.2 per cent, and units rent for $320 per week with a yield of 4.7 per cent.
Mr Emirzade said about 60 per cent of properties his office listed in Corio were sold to investors, including those from Melbourne and interstate.
They are attracted to the affordability, capital growth prospects, rental yields and the larger blocks that offer development opportunities.
“In Melbourne or Sydney, you’d be hard-pressed to find a three to four-bedroom house on 650sq m for less than $500,000,” Mr Emirzade said.
Drawn to the block size with subdivision potential, a Sydney investor snapped up a three-bedroom house on 905sq m at 44 Michigan Avenue, for $640,000.
The prime development site with approved planning permits for five dwellings attracted multiple offers and sold in two weeks of hitting the market.
Corio’s location, just 9km from the Geelong CBD, and growing infrastructure also entice buyers.
“Corio has a shopping centre and two of the largest gyms in the Geelong region,” Mr Emirzade said.
“It’s only a five-minute drive from Avalon Airport, close to the North Shore train station, and less than an hour from Melbourne.”
A young Melbourne couple who plans to commute to the city for work bought a three-bedroom house on 562sq m at 88 Cloverdale Drive, for $585,000.
“This renovated home drew offers from investors, young families and first-home buyers from the local area, Melbourne and interstate,” Mr Emirzade said.
Another affordable regional suburb primed for growth is Long Gully in Bendigo.
Only 3km from the Bendigo CBD, it offers a mix of homes that are within easy reach of shops, bus services and schools, and near amenities in neighbouring California Gully and Eaglehawk.
The median house price in Long Gully is $400,000 and houses generate an annual rental yield of 4.9 per cent.
Enquiries are on the rise from entry-level buyers seeking opportunities to get into the market, according to Barry Plant Bendigo agent Reecy Owins.
“Where can you buy a house on a good-size block for $300,000-$400,000 these days?” she asked.
“You can in Long Gully.”
Ms Owins pointed to the three-bedroom house on 680sq at 26 Sparrowhawk Road that sold for $313,000.
The property attracted two offers from first-home buyers and sold to a Melbourne investor.
“The buyer will rent it out for $340 a week,” Ms Owin said.