This is according to the latest analysis by RiskWise Property Research that found high population growth and a rise in infrastructure projects, leading to an improved economy and more jobs, have greatly increased the popularity of the area.
"Add to that it only takes an hour to drive to Melbourne and housing is significantly more affordable, it is ticking plenty of boxes for a lot of people with their eye on capital growth in the future," RiskWise CEO Doron Peleg said.
One key piece of infrastructure will be delivered by the Federal Government thanks to a $50 million funding boost to help deliver the Geelong rail duplication between South Geelong and Waurn Ponds train stations. Meanwhile, the Victorian State Government has also directed $50 million to investigate fast rail between Geelong and Melbourne, as part of the Melbourne Airport Link, to be delivered within 10 to 15 years.
It all adds up to an economic windfall for the region, with more employment attracting more residents to the area.
"And this, in turn, has seen capital growth in the past five years explode," Mr Peleg said, "with the forecast also looking good for future capital growth."
He said compared to Melbourne, Geelong offered greater value for money and more affordability.
"Given its proximity to Melbourne, it is becoming very popular with those wanting a great lifestyle and better housing options with more value for money … and they are still within a comfortable distance from the CBD to commute to work," he said.
"Of course, it’s always important to remember that houses are a good investment while units carry a higher level of risk due to potential oversupply issues and that they do not appeal to families looking for three bedrooms and a yard, meaning demand is less."
The median house price for Geelong is only $576,118 compared to $836,122 for Greater Melbourne. For units in Geelong its $403,408 compared to $552,941.
"This means who can buy a house in Geelong for around the same price you could buy a unit in Greater Melbourne. It represents excellent value for money," he said.
"And we believe it will only get more popular in the next few years, thereby presenting projected solid capital growth."
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