Latest news with #Norlane
News.com.au
5 days ago
- Business
- News.com.au
OK Boomer, what a 1980s house really costs buyers today
Hopeful Geelong home buyers are paying substantially more money relative to the cost of everything else than generations before them, alarming new analysis reveals. The exclusive PropTrack research showed home prices were four-times higher than in 1980 once adjusted for inflation. But today's buyers are paying between two and eight-times on top of the adjusted prices for a typical house in many suburbs. The research measured housing costs across each decade, showing property prices over the 1990s, 2000s and 2010s were also markedly cheaper when compared to other living costs. Geelong's $26,500 median house price in 1980 is equivalent to $136,100 in today's money, while the $470,000 median in 2000 is worth $682,400 in today's dollars. But that's well short of the actual $890,000 median house price in 2025. The study also showed the dramatic shift in Geelong's property market map, particularly as a result of gentrification. Geelong West was the cheapest suburb back in 1980 when a typical house cost $23,075, cheaper than the average house in Norlane at the time. In today's money that's just $118,000. The actual median price in the suburb is more than six-times higher at $872,000. Inner suburbs such as Geelong, East Geelong and Manifold Heights had median house prices less than $30,000 in 1980. A typical house cost $34,000 in Newtown in 1980 ($177,200 in today's money) compared to $1.117m today, while Highton was the most expensive suburb with a $48,000 median house price. That's $338,900 when adjusted for inflation, but is now worth $875,000. Geelong buyers advocate Tony Slack said how typical buyers were entering the market today were different as the cost of housing increased compared to incomes. 'If you're single or a couple and you're renting, it does it make hard to crack in to the market,' he said. 'Without a doubt that there's more family money there,' he said. 'And government schemes are the same thing – they weren't available when I bought the first time. 'I think the cost of living in the old days, there just seemed to be more money left over.' Mr Slack said buyers were less prepared to buy a house that needed to improvements, but worked within a budget that favours lifestyle attributes, such as being close to a network of friends, family, work and social activities. He said buyers often purchased their first home as a stepping stone, considering other factors such as schools with their second purchase. 'That worst house in the best street doesn't seem to have as much bearing as it used to,' he said. The study laid bare the widening generational wealth gap, with long-term home owners sitting on huge capital gains, while today's first-time buyers are confronted with higher deposits, debt burdens. PropTrack senior economist Angus Moore said the rapid growth in home prices since the early 1990s was linked to lower interest rates during that time. The Reserve Bank of Australia this month cut 25 basis points from the official cash rate, now at 3.85 per cent compared to a high of 17 per cent in 1990. Lower interest rates reduce the cost of borrowing, allowing buyers to afford larger loans, which can drive up property prices. But the boost in borrowing power does not offset the growing cost of saving for a deposit. 'The deposit hurdle is just unequivocally harder than it was four or five decades ago, and that has manifested in home ownership rates which have fallen over those years,' Mr Moore said. WHAT A 1980s house really costs today Suburb Property type 1980 median price In today's money Actual 2025 median price Anglesea H $35,000 $179,700 $1,410,000 Barwon Heads H $28,450 $146,100 $1,425,000 Bell Park H $30,000 $154,100 $630,000 Bell Post Hill H $37,000 $190,000 $660,000 Belmont H $34,000 $174,600 $705,000 Clifton Springs H $35,500 $182,300 $652,600 Corio H $29,000 $148,900 $490,000 East Geelong H $26,000 $133,500 $772,500 Geelong H $26,500 $136,100 $890,000 Geelong West H $23,075 $118,500 $872,500 Grovedale H $41,000 $210,500 $669,800 Hamlyn Heights H $32,500 $166,900 $717,500 Herne Hill H $31,000 $159,200 $700,000 Highton H $48,125 $247,100 $875,000 Jan Juc H $30,000 $154,100 $1,250,000 Lara H $35,825 $184,000 $680,200 Leopold H $42,000 $215,700 $657,500 Lorne H $40,000 $205,400 $1,678,000 Manifold Heights H $29,250 $150,200 $1,121,200 Newcomb H $28,750 $147,600 $551,000 Newtown H $34,500 $177,200 $1,117,500 Norlane H $23,500 $120,700 $453,500 North Geelong H $24,325 $124,900 $620,000 Ocean Grove H $35,900 $184,300 $972,500 Point Lonsdale H $39,500 $202,800 $1,200,000 Portarlington H $31,125 $159,800 $848,800 St Leonards H $27,750 $142,500 $720,000 Thomson H $27,500 $141,200 $512,500 Torquay H $31,500 $161,800 $1,185,000 Belmont U $30,250 $155,300 $548,000 Highton U $35,000 $179,700 $520,000 Newtown U $31,750 $163,000 $620,000
News.com.au
23-05-2025
- Business
- News.com.au
Geelong suburbs where buying is better than renting revealed
More Geelong suburbs are within reach of renters trying to break into the housing market after this week's interest rate cut, new analysis shows. Research from Finder reveals it's already better to buy a unit than lease one in Geelong West and Whittington. The Reserve Bank's decision to cut rates by another 25 basis points further opens the door to other suburbs by shrinking the gap between more expensive weekly mortgage repayments and rents to less than $50 a week for units in Norlane, Bell Post Hill, Lara, Herne Hill and Manifold Heights. There's a further glimmer of hope in the house market, with renters needing to find less than $100 extra a week to buy in Norlane and Breakwater. The research assumes homeowners purchase at the current suburb median price, with a 20 per cent deposit, a 5.81 per cent interest rate and a 30-year loan term. When the rate cut is passed on, paying off the mortgage on a unit would be $30 a week cheaper than renting in Geelong West and $17 cheaper in Whittington. This would increase to a saving of $41 and $28 a week respectively, if the RBA cut rates again. Geelong Real Estate Co director Ricky Forte said Geelong West units remained one of the few affordable footholds into the market. 'With median prices around $500,000, it's a way to break free of rising rents without sacrificing location,' Mr Forte said. 'You can buy a neat two-bed unit here for the same weekly cost as renting and you're walking distance to everything.' He said crunching the numbers around paying off a mortgage versus rent had become a serious part of decision-making for homebuyers. But Doolan Finance mortgage broker Sarah Daly said it wasn't the only consideration, as renters had to factor in security and future returns. 'Even though rent is expensive with the way rates are, it is still more affordable, in most cases, to rent. But what does that look like long term?,' Ms Daly said. 'Just because it's more affordable to rent you're not taking into account your future growth of assets so I think it's got to be looked at as to whether you can versus whether you should.' She said confidence was returning to the Geelong market, with inquiries increasing on the back of the first rate cut. Hayeswinckle, East Geelong agent Tiffany Simpson said it was prime time for first-home buyers, who felt more confident to use their full borrowing capacity than they did 12 months ago. 'It is an opportune time because I don't think there's going to be any incremental increases, if anything there will be slow cuts,' she said. 'It is trending in the right way, and it may not be significant right now, however if you're able to secure something now going forward it should become more affordable. 'If you wait too long then you will miss out because the competition will only increase.' RENTING VERSUS BUYING IN GEELONG Suburb Property type Median asking rent (weekly) Repayments (weekly) after this week's cut Difference between repayment and rent Difference between repayment and rent after 3rd rate cut Anglesea H $600 $1464 -$864 -$825 Armstrong Creek H $530 $705 -$175 -$156 Bannockburn H $590 $851 -$261 -$238 Barwon Heads U $640 $1117 -$477 -$447 Barwon Heads H $660 $1540 -$880 -$838 Bell Park U $465 $550 -$85 -$70 Bell Park H $490 $663 -$173 -$155 Bell Post Hill U $450 $472 -$22 -$10 Bell Post Hill H $520 $716 -$196 -$176 Belmont U $440 $583 -$143 -$128 Belmont H $490 $759 -$269 -$249 Breakwater H $463 $556 -$93 -$78 Charlemont H $520 $667 -$147 -$129 Clifton Springs H $495 $708 -$213 -$194 Corio U $350 $412 -$62 -$51 Corio H $420 $531 -$111 -$97 Curlewis H $515 $692 -$177 -$158 Drysdale U $450 $594 -$144 -$128 Drysdale H $500 $770 -$270 -$249 East Geelong H $520 $830 -$310 -$287 Fyansford H $650 $1065 -$415 -$387 Geelong U $520 $667 -$147 -$129 Geelong H $550 $954 -$404 -$379 Geelong West U $450 $420 $30 $41 Geelong West H $530 $922 -$392 -$367 Grovedale U $435 $538 -$103 -$89 Grovedale H $510 $719 -$209 -$190 Hamlyn Heights U $425 $576 -$151 -$135 Hamlyn Heights H $490 $781 -$291 -$270 Herne Hill U $370 $399 -$29 -$18 Herne Hill H $470 $759 -$289 -$269 Highton U $440 $542 -$102 -$88 Highton H $550 $934 -$384 -$359 Indented Head H $460 $759 -$299 -$279 Jan Juc H $680 $1377 -$697 -$660 Lara U $460 $485 -$25 -$12 Lara H $560 $737 -$177 -$158 Leopold U $440 $524 -$84 -$70 Leopold H $500 $705 -$205 -$186 Lorne U $600 $954 -$354 -$329 Lorne H $680 $1689 -$1009 -$963 Lovely Banks H $580 $911 -$331 -$306 Manifold Heights U $350 $395 -$45 -$34 Manifold Heights H $510 $1366 -$856 -$820 Marshall H $495 $683 -$188 -$170 Mount Duneed H $550 $759 -$209 -$189 Newcomb U $390 $518 -$128 -$114 Newcomb H $450 $596 -$146 -$130 Newtown U $450 $624 -$174 -$157 Newtown H $578 $1247 -$669 -$635 Norlane U $400 $412 -$12 -$1 Norlane H $400 $489 -$89 -$76 North Geelong H $465 $661 -$196 -$179 Ocean Grove U $500 $804 -$304 -$282 Ocean Grove H $580 $1036 -$456 -$428 Point Lonsdale H $620 $1309 -$689 -$654 Portarlington U $450 $765 -$315 -$294 Portarlington H $490 $936 -$446 -$421 Queenscliff H $530 $1735 -$1205 -$1158 Rippleside H $605 $1334 -$729 -$693 St Albans Park H $475 $634 -$159 -$142 St Leonards U $430 $619 -$189 -$173 St Leonards H $480 $781 -$301 -$280 Thomson H $440 $556 -$116 -$101 Torquay U $620 $954 -$334 -$309 Torquay H $690 $1274 -$584 -$550 Wandana Heights H $653 $1003 -$350 -$323 Waurn Ponds H $520 $830 -$310 -$288 Whittington U $413 $396 $17 $28 Whittington H $450 $574 -$124 -$108 Source: Finder. Assumes homeowners purchase at the current suburb median price, with a 20 per cent deposit, a 5.81 per cent interest rate and a 30-year loan term.
