OCEAN Grove has been tipped to remain one of the hottest places to buy property in 2009, in a market where most of the State will remain flat.
The predictions were made in the final RP Data Property Pulse report for 2008. In 2008 the town saw a 13 per cent increase in median prices – compared to 3.6 across the Greater Geelong area. In 2007 the picture was the same, Grove’s prices went up 9.4 per cent while the rest of the region experienced a more modest 4.1 per cent increase. The latest study positioned the Grove and Cape Woolamai, on the Bass Coast, as the regional areas to buy in.
The results are based on suburbs that represent good value for money, based on location, necessities and social options.
RP Data’s Analyst Tim Lawless said falling interest rates, increasing affordability, rising rentals, improving investment yields and shortage of housing would act as market drivers in the hot spots to buy.
“The markets that are most likely to record good capital growth over the next 12 months are those that hold that driver appeal,” Mr Lawless said.
In October this year Ocean Grove’s median house price was $424,500 as compared to $295,000 across Geelong. A year ago the median house price was $345,000.
Across Australia, the median value of homes this year decreased by 1.24 per cent to October. House values dropped by 1.55 per cent and unit values by 0.29 per cent.
The RP Data also forecast that the higher end of the market was likely to languish as demand declined.
* Rising house prices are not good news for everyone. Price rises also pose problems for first time home buyers. Do you think the council should plan for more affordable housing in the area? Register your view in the Voice poll by emailing news@oceangrovevoice.com
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