The worst of Victoria’s second wave COVID-19 lockdown had virtually no impact on Geelong home sellers, new research shows.
Just 19 Geelong properties sold at a loss in the last three months of 2020, the research shows.
CoreLogic’s quarterly Pain & Gain report shows Geelong was Australia’s fourth-best region for profitable sales.
More than 1200 properties changed hands in the region in the quarter.
The research found 98.5 per cent of properties sold in the quarter had gained value compared to the previous sale price.
However, the 19 properties represented a slight increase in loss-making sales over the previous quarter.
CoreLogic’s Australian head of research Eliza Owen said Geelong had long delivered strong returns.
“In fact the rate of loss-making sales has been less than 2 per cent since September 2017. It is a long run of high profitability,” she said.
Ms Owen said Geelong had experienced a very strong spill over of growth from Melbourne over time.
“But on top of that it’s developed its own character and independence as a desirable city,” she said.
“Especially through COVID where we had anecdotes of people trying to escape lockdown conditions and settle in lower density lifestyle environments, which Geelong offers and often at a lower price point to what we might see in the more lifestyle areas of Melbourne.”
Ms Owen said dwelling values rose about 3 per cent in the three months to December.
The loss-making sales had a median hold period of 2.3 years, compared to the median 8 years reported in Geelong in general.
“Short sales implies some kind of urgency but because the loss-making sales are at such a low number, it really could just be more of an individual circumstance than a broader trend across the market.”
Gartland Property, Geelong agent Nathan Ashton said the report put the current market into perspective.
“It was still pretty strong at the tail end of last year. For those figures to be where they are is really encouraging,” he said.
“It justifies the fact that our market doesn’t really drop. Whereas a lot of markets are very cyclical and they’ll go up and then they’ll come back down, our market isn’t like that – it increases and stabilises.”
He said announcements like the fast train, the return of international flights to Avalon Airport or the Spirit of Tasmania Geelong ferry terminal made positive impacts on housing demand.
“Anything that is structured around jobs growth or infrastructure improvement is when things start to grow again.”
Melbourne saw the second highest rate of profit making sales of the capital cities at 94.3 per cent.
Regional Victoria showed particularly strong returns for owners, with over 98 per cent of sales
making a profit across Ballarat and Bendigo.