Five of the state’s postcodes – including a “secret” Melbourne suburb and an emerging coastal town – have been named among the nation’s top property safe havens.
Victoria’s safest property markets to invest in include a “secret” Melbourne suburb and a coastal town where buyer interest is starting to swell, according to a new report.
Just five postcodes in the state made the list of Australia’s top 50 “consistency markets” in Hotspotting’s latest Price Predictor Index: Macleod, Clifton Springs, Geelong West, Colac and Newington.
But report author Terry Ryder highlighted several other markets as offering “safety for investors”, including Chirnside Park, Clifton Hill, Maidstone and Oakleigh in Melbourne, Ballarat suburbs Brown Hill, Canadian and Delacombe, plus Leopold and North Bendigo.
The suburbs were chosen because they had recorded consistently strong sales volumes for more than three years.
Mr Ryder said they were unlikely to become “boom markets”, but areas with “this high level of even performance often have good price growth over time”.
Three postcodes that had been named among the nation’s most consistent markets in previous reports – Mt Evelyn, Sunbury and Echuca – had since enjoyed 14 per cent, 10 per cent and 7 per cent annual house price rises respectively, he noted.
Colac had between 51-74 sales every quarter for almost five years, while the last four years saw Geelong West notch 40-59 sales each quarter and Newborough, 31-53.
Clifton Springs recorded between 41-66 sales for each of the last 13 quarters and Macleod, 31-48 for 14 quarters.
Mr Ryder noted the median house price in the Latrobe Valley’s Newborough had already had a double-digit boost to hit $320,000.
Ray White Macleod agent Brett Schembri said price gains had been “steady” in the little-known northeastern suburb since he started selling homes there a decade ago.
“It’s a safe area to invest – if there’s a bit of a downturn, we don’t see much of an adjustment,” he said.
“Some years, we’ve seen almost 20 per cent growth.”
Mr Schembri said Macleod offered “the best of both worlds”, being an easy train or car commute into the CBD but also having a “quiet, leafy, little village” feel.
“It’s been a bit of a secret,” he said. “Many people have no idea where it is, you have to talk about Heidelberg and Rosanna.”
That was starting to change, and it had become “almost impossible” to buy a house for less than $1m, he said. But units were still offering affordability.
The $1.56m sight-unseen sale of a dated Joynt St weatherboard during lockdown in September highlighted the area’s ongoing strength, the agent said.
Buxton Geelong Group director Ben Riddle said Geelong West’s closeness to shopping and eat street Pakington St – “our version of Chapel St” – and the city’s priciest suburb in Newtown ensured it offered strong buying.
While the house median sat at $885,000, Mr Riddle said $1m was now the “entry point for a liveable home” in the suburb.
Clifton Springs, on the Bellarine, offered more affordability on top of lifestyle perks like access to beaches, wineries and restaurants – and as a result, was transitioning from “flying under the radar” to becoming a destination for investors and first-home buyers.
“The primary hot spots have been Lorne, Barwon Heads, Torquay and Ocean Grove, but we’ve now seen the emergence of lower-profile suburbs like Clifton Springs, Portarlington, St Leonards and Intended Head,” he said.
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SAFEST PROPERTY MARKETS
Victorian postcodes among nation’s top 50 consistency markets:
Clifton Springs (Greater Geelong): $570,000 house median
Colac (Colac-Otway): $375,000 house median
Geelong West (Greater Geelong): $885,000 house median
Macleod (Banyule): $1.065m house median, $675,000 unit median
Newborough (Latrobe): $320,000 house median
Other consistent markets: Brown Hill, Canadian, Chirnside Park, Clifton Hill, Delacombe, East Bendigo, Leopold, Maidstone, North Bendigo, Oakleigh
Source: Hotspotting Price Predictor Index, summer 2021-22 edition
Originally published as Victorian real estate: the suburbs offering ‘safety for investors’