Rate cuts: The Geelong suburbs seeing biggest price gains
The analysis of PropTrack home price data reveals 25 Geelong suburbs where house or unit prices have climbed since the Reserve Bank began easing interest rates in February.
The RBA cut the official cash rate to 3.6 per cent on Tuesday.
The analysis included suburbs where at least 30 houses or units had sold in the previous 12 months, revealing median prices had climbed as much as 8.25 per cent in the six months since rates began to ease.
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Wandana Heights buyers have seen the median house price climb back to $1.025m in August.
The data reveals median house prices had climbed 6.41 per cent, or almost $40,000 in St Albans Park and between 2 per cent and 4.3 per cent in 12 suburbs including Whittington, Hamlyn Heights, Bell Park, central Geelong, Herne Hill, Highton and Corio.
Gartland Geelong agent Michael Tricarico said new buyers to the market were among the first groups to move, increasing demand in those suburbs.
'There's been a real big influx of investors and first-home buyers and even second-home buyers,' Mr Tricarico said.
'It's quite clear there's been a big increase in terms of open home numbers and therefore people coming through with offers on properties.
'The biggest driver of that is the level of homes on the market – there's not many homes on the market at the minute.'
Mr Tricarico said investors and first-time buyers were adding demand to the market, but not necessarily supply.
'You'll find them particularly in suburbs like Hamlyn Heights, and St Albans Park where it's going to be about price, or affordability,' he said.
Houses were often bigger, more affordable than more expensive neighbouring areas, and on bigger blocks.
'A lot of those investors and first-home buyers are wanting to buy something on 600sq m or bigger.'
Geelong home prices rising since rate cut cycle began:
Suburb Type Median sale price % change
Wandana Heights H $1,025,000 8.24%
St Albans Park H $622,500 6.41%
Barwon Heads H $1,490,000 5.86%
Geelong U $647,500 4.86%
Whittington H $537,500 4.37%
Point Lonsdale H $1,200,000 4.35%
Hamlyn Heights H $725,000 3.57%
Ocean Grove U $780,000 3.31%
Bell Park H $633,000 3.26%
Geelong H $905,000 2.84%
Herne Hill H $700,000 2.30%
Thomson H $524,000 2.24%
Highton H $881,000 2.20%
East Geelong H $788,750 2.10%
Drysdale H $735,000 2.08%
Corio H $495,000 2.06%
Charlemont H $626,000 1.79%
Marshall H $630,000 1.61%
Bannockburn H $780,000 1.04%
Norlane H $460,000 0.96%
Armstrong Creek H $653,250 0.50%
Torquay H $1,175,000 0.43%
Highton U $517,000 0.39%
Fyansford H $977,500 0.26%
Leopold H $662,500 0.23%
Source: PropTrack. Median sale price in August. Change in median price since February 2025.
But interest rates cuts alone won't attract the people who don't need to sell to inject more supply to the market, he said.
'Whether they're upsizing or downsizing, people are hesitant to put theirs on the market until they see something that they like.'
But a strong spring market could provide a catalyst that brings more stock to market, he said.
McGrath Geelong director Jim Cross is expecting increasing confidence among buyers to spread the market recovery throughout the region.
'It's still patchy but we are seeing signs of improvement in increased buyer inquiry numbers and people through open homes and inspections, and an increased number of genuine buyers in the marketplace on specific properties,' Mr Cross said.
'My gut feeling is we will start to see those increased numbers fill out throughout the majority of the market.'
Mr Cross said people can feel Geelong has through the bottom of the market.
'You feel the market improving, but that it's gradual. Another rate cut will really give a lot of buyers confidence in committing to purchase.
'And we'll also see an influx of listings coming to market as well, because there's vendors that have been in a position where they don't need to sell, from a timing point of view, that have been holding off for an improved market.'
But Villawood Properties executive director Rory Costelloe said a 3 per cent interest rate serviceability buffer set by the banking watchdog APRA for banks to assess all home loan applicants on remains an impediment to returning affordability to the property market.
Without APRA cutting the 3 per cent buffer back to the pre-Covid 2.5 per cent level, new homes would remain out of reach for many buyers, Mr Costelloe said.
'It's high time the banking watchdog cut the 3 per cent buffer back to safeguard the housing sector, help those desperate first-home buyers still unable to enter the market and boost the economy.'
Mr Costelloe said the industry was losing sales from people who pay a deposit on a block or house-land package, only to then discover the impact of the 3 per cent margin forces them to cancel their purchase.
RBA governor Michele Bullock conceded that lower interest rates usually mean property prices go up.
'I'd have to say, though, that the easing so far has been fairly gradual and what we've seen so far is a fairly gradual recovery in housing activity broadly, housing prices, development dwelling investment.'
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