Investors tipped to visit affordable Geelong hotspots in 2026 – realestate.com.au

Geelong has been tipped as a hotspot for Victorian investors in 2026, joining the coastal enclaves of Ballarat and Melbourne as top choices for the coming year.

Cate Bakos, chair of Property Investment Professionals of Australia, has named two affordable Geelong suburbs as among her top picks for investment buyers.

Herne Hill and Grovedale made the list, along with Melbourne locations such as Oakleigh, Lilydale, Lalor, Elsterwick, Williamstown, Brunswick West, Mount Waverley and Ballarat East.

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Ms Bakos said much of Victoria has been recovering for several months after a recession in recent years, but has seen only modest growth so far.

But with other parts of the country seeing significant increases in recent years, the state was starting to look like it would see a broad-based increase in 2026.

“There has been a lot of investor demand for Victoria recently and it is a value proposition,” Bakos said.

“But you have to be picky. Many people are looking for a cheaper home in some areas with lower socio-economic demographics – and they will face challenges.”

Noting that following the crowds in these areas could be “a danger,” Ms. Bakos said it was possible that investors would outcompete owner-occupiers and distort local markets and possibly create a real estate bubble.

Property Investment Professionals of Australia, Chairman Cate Bakos.

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She said Herne Hill was a great proposition, with some beautiful character homes and an average house price of just over $700,000.

“Western Geelong has continued to thrive and Herne Hill is tucked just behind Manifold Heights, which has performed well in Geelong’s post-Covid recovery,” she said.

“My favorite feature in Herne Hill (apart from the beautiful houses on offer) is the railway walk; the old, disused railway line is now a quiet track between parks.”

Grovedale saw a surge in investor activity in the second half of 2025, as affordable older homes with room for improvements on larger blocks proved an attractive combination.

“Grovedale’s median house price of $675,000 puts family homes within easy reach in Geelong’s established south,” Bakos said.

The renovator’s delight at 5 Wirksworth St, Herne Hill, sold for $595,000 in December.

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Ray White, Highton agent Ben Powe, said a large proportion of the Grovedale listings were sold to buyer’s lawyers acting on behalf of interstate investor clients.

But he said this put pressure on first home buyers competing for the same entry-level homes.

“Right now I would say houses in Grovedale cost more than in Highton,” Powe said.

“If it’s an ’80s four-bedroom, two-bathroom house in Grovedale, they seem to pay more, which I’ve never seen before.

“It would be 50 percent buyer advocates, and for the most part they’re displacing first home buyers and paying the big dollars.

This four-bedroom home at 156 Grove Rd, Grovedale, is listed with a price expectation of $680,000 – $740,000.

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“I think they like all the facilities around Waurn Ponds, the train station, Deakin, Epworth and the shopping centre.”

Real estate analyst Terry Ryder, founder and director of Hotspotting, said major investments in infrastructure tend to be a harbinger of rising buyer demand and prices.

“It creates jobs and from that comes the demand for real estate,” he said.