MELBURNIANS priced out of the market are driving up land prices in Geelong, making it one of Australia's most expensive regional areas.
A Housing Industry Association and RP Data Residential House Report released yesterday ranked the Geelong region as the fifth most expensive regional area in the country to purchase a residential allotment, the Geelong Advertiser reports.
HIA senior economist Andrew Harvey said average land prices had risen from $186,000 in January 2011 to $190,000 in September.
Mr Harvey said, despite its top five listing, Geelong land was still affordably priced compared to Melbourne.
"I think it's obviously seen as a good place to live and there is the affordability advantage compared to Melbourne," he said.
"You get buyers who have had enough of inner-city prices and move out to Geelong for something a bit cheaper.
"I personally don't think Geelong land is overpriced when you keep in mind there isn't enough housing supply across Victoria and the market is working to set the prices."
Mr Harvey said the Victorian Government's generous first-home owner grants and land release practices had boosted Geelong's market while others faltered.
"It's helped the industry hold up compared to the rest of the country," he said.
He predicted demand for land in the region would remain solid despite a forecast that the Victorian market would slow during the next year.
The HIA and RP Data report ranked the Richmond-Tweed region in NSW and the Sunshine Coast in Queensland as the most expensive spots to buy land.
South Australia's Northern region offered buyers a bargain as the least expensive regional market.
Read more at the Geelong Advertiser.
