Insights - Housing Approvals Skyrocket in Geelong
Housing Approvals Skyrocket in Geelong
The Geelong region has become one of the fastest growing cities with new residential supply set to soar with almost 60,000 new homes to be built over the next 20 years.
Over the 2020/21 financial year, the value of new approvals rose by $530.7 million to $1.632 billion – a staggering increase of 48.2% on the previous financial year.
In terms of number of approvals: there were 4606 residential approvals in the 2020-2021 financial year, up from 3109 prior year.
In 2020, there were 2620 dwellings completed in Geelong. We would expect this will increase in 2021 due to strong approvals.
The number of houses approved in Victoria during the year to April 2021 is the highest for any 12-month period since the ABS started collection of the data in 1983.
It was a different story for units and apartments where there were 19,038 units approved during the year to April 2021, decreasing by 22.6% from the 12 months ending April 2020 however Geelong has benefitted from strong population growth which has inflated by 2.22% per annum over the past ten years to reach
almost 265,000 people.
Approvals are expected to slow over the coming six months following the cessation of the application period for the HomeBuilder grant and more recently the land transfer duty waiver.
Across Victoria, housing approvals increased by a staggering 24.8% to 44,879 approvals during the year to April 2021 and although there has been a drop, they remain higher than a year ago.
Median house prices in Geelong continue to grow with house prices rising by almost 20% over the year to June, 2021 to reach $695,000 while units rose by 21.5% over the same period to $532,000.
Geelong’s residential supply has become increasingly diverse with medium and high-density dwellings representing a higher proportion of total dwelling approvals. A historically low interest rate environment and solid population growth has resulted in total Geelong dwelling approvals increasing further over the current financial year.
Major projects underway include the Barwon Heads Road Upgrade which is expected to be completed in late 2023.
The $365 million project will duplicate four kilometres of Barwon Heads Road, from Settlement Road to Reserve Road in Charlemont. The South Geelong to Waurn Ponds Rail Duplication project is expected to start with preliminary surveys in 2021 and construction completion by 2024. The project being part of the Federal and State Government commitment of over $1 billion bringing frequent reliable rail services to the region.
Stage One of the Geelong Fast Rail project is expected to commence by 2023 and support over 2,800 jobs throughout the construction phase. The State and Federal Governments both pledge $2 billion to the project.
The infrastructure investment into the City of Geelong will continue to sustain good growth and underpin population growth, whilst affordability in Geelong compared to Melbourne, together with the ongoing low interest rate environment and greater flexibility in workplaces, will continue to see Geelong a viable housing option.