The search for family homes has been turned on its head after the recent spike in building costs with competition rising in Geelong’s fastest-selling suburbs.
Demand for renovated houses has risen in Highton, edging out features such as whether they have three or four bedrooms.
New data from PropTrack has put Highton in the top three fastest-selling suburbs in the region, where houses typically sell in 31 days, behind Jan Juc (25 days) and Grovedale (26 days).
Seller Stories: Have we over-capitalised?
RELATED: Renovation know-how boosts buyer confidence for Belmont hidden beauty
Geelong’s home building hot spots and NIMBY areas revealed
Geelong home prices 2028: Suburbs where properties are forecast to soar
Barry Plant Highton agent Kieron Hunter said the increase in building costs and time to secure tradies was the key reason renovated properties were at the top of the tree in the premium suburb south of the Barwon River.
“Whether it’s three or four bedrooms, they’re just as sought after. I’d say 80 per cent of buyers are looking for a good entertaining area from the kitchen. North facing would be ideal as well,” Mr Hunter said.
“But the thing that’s really separating the market is renovated versus unrenovated and for obvious reasons because of how difficult it is to actually undertake a renovation.
The renovated house in Gwyther Rd, Highton sold for $781,000 after 11 days on the market.
The renovated house in Gwyther Rd, Highton sold for $781,000 after 11 days on the market.
“When you actually look at the price of construction for an unrenovated property versus one that’s renovated. It doesn’t stack it up.
“It used to be the unrenovated version was the better thing to buy. That’s really turned on its head.
“That added cost and timeline is swinging people toward properties that are turnkey.”
Buxton agent Tony Moorfoot said the main demographic for Highton was the family home.
“Generations have come through Highton and new generations of families are coming through and wanting to be in those popular areas for schools,” he said.
Highton’s long list of amenities, from shopping centres, hospital, good schools in the suburb and across the river in Newtown were reasons why it’s such a popular family suburb.
“It’s central. It’s close to the CBD and it’s close to the coast, there’s great schooling around whether it’s private or public. Only across the river for a lot of the private schools and then you’ve got the Belmont highs are the ones who’ve got a really good names and what are the primary schools.”
First-home buyers and investors are among the most active in Grovedale, if the price was right.
Ray White Highton agent Ben Powe said the $550,000 to $650,000 was the most popular price bracket in Grovedale, where a house typically spends 26 days on market.
Grovedale has a $682,000 median house price, meaning there’s plenty to choose from around this bracket, from original 50-year old houses to near-new residences.
4 Burke Court, Grovedale, sold for $640,000 recently.
10 Backelei Crescent, Grovedale, has gone under offer at $695,000 after hitting the market in April.
Amenities, such as schools, Waurn Ponds shopping centre and train stations were key drawcards, he said.
“A lot of first time buyers and investors are looking around and that sort of bracket.
“Recently, I sold one at Burke Court, Grovedale. A very tired and small four bedroom, two bathroom house but not a bad spot fairly close to Waurn Ponds.
“I sold that to an investor based in Melbourne, and they secured a tenant for $500 a week which is just incredible.
“I’ve got 10 Backelei Crescent which has gone under offer. That’s a three year old, four bedroom, two bathroom, a study and three living area house that’s gone under offer at $695,000.
“That’s showing that for only $50,000 more, in some pockets of Grovedale you get in a three year old home that’s twice the size so investors and buyers see value in older Grovedale positioned close to the amenities and probably in the middle of schools too, you’ve got Nazareth, Mandama and Grovedale West all within walking distance from Burke Court.”
21 Watersun Rd, Jan Juc, was built Dennehy Builders and sold for $1.4m after two weeks on the market.
Accurate pricing was key to a quick campaign, Ray White Lara agent Terry Cleary said.
Overprice a home at the start of the campaign and homeowners risk missing out on the best buyers when most eyes should be on their property.
Houses typically spend 33 days on market in Lara, 15 days more than the same time last year.
“I’ve always said that properties are well presented and well priced are getting activity, they’re the ones that are selling if the price is right.
“If the market deems a property overpriced, you just do not see people come through.”
Mr Cleary said the first seven days were when most eyes will be on a property when it’s listed on platforms such as realestate.com.au
“If your price is wrong, the question you got to ask is can you in fact get those eyes back on the property when you do correct the price?”
The PropTrack data shows properties are spending more time on the market compared to the same time last year.
Only a handful have seen days on market retreat this year, with a large number of suburbs seeing prices edge down.