HOMEBUYERS might be struggling to find properties under $400,000 in capital cities, but the price bracket is entrenched in some of Geelong’s cheapest suburbs.
But CoreLogic research for Aussie Home Loans revealed rising house prices has meant that buyers needed deeper pockets to break into many affordable areas.
Norlane is Geelong’s cheapest suburb, but the median house value climbed 128 per cent in a decade to $365,320.
Urban renewal and buyer demand, particularly from investors, pushed Norlane’s value to within $3000 of prices in neighbouring Corio.
About 72 per cent of house sales are for less than $400,000 in these suburbs, with more than half also in Whittington.
But the report shows houses in most of Geelong’s affordable suburbs was now between $400,000 and $600,000.
Marshall, Bell Post Hill and Newcomb is the best bet between $400,000 and $600,000, with 87, 85 and 81 per cent of sales in that bracket respectively.
Harcourts, North Geelong agent Joe Grgic said buyers look according to their budget and where they’re happy to live.
“Typically, $400,000 is where some first-home buyers will start usually, when they’ve got a reasonable deposits and a reasonable jobs that they’ve been in for a while,” he said.
“They’ve bought a three-bedroom house and they will rent a room or something to get by.”
He said most people were well informed about the market.
“We often get people from a suburb saying I can’t believe people are paying this price for our neighbourhood.
“The funny thing is though they want every cent of it when they come to sell.”