Geelong and the TAC

[pete_w]

Hi!

The Transport Accident Commission (TAC) seems to be relocating here. (http://www.geelongaustralia.com.au/...t_Accident_Commission_to_relocate_to_Geelong/)
I read in the paper today 16,000 sqm of office space is planned, with the $85 million contract to build awarded on monday. To be completed by 2009 . Macquarie Bank's development company has settled on a 58 hectare site at Leopold, and it seems 600 dwellings are to be built with an estimated value of about $100 million.

Anyway, as part of the relocation, the TAC/government is offering incentives for around 600 staff to buy houses in Geelong, in an effort to keep them onboard. The incentives seem to mainly be the payment of a lump sum of up to $30,000, if they buy before December 2009.

According to the article, the median price in Geelong is $283,500. Looking on realestate.com.au, many 3bdr houses seem to be $500k+. This strikes me as quite expensive ... especially comparing with what you could get in Sydney for $500k/$600k.

Im not really familiar with Geelong. Do you guys think the relocation will have a significant affect on economic growth and property prices around the area? There is also apparently a road to be completed around 2008/2009, does anyone know how that is going? I'm also interested in what people more familiar with the price history of the area think of ~$500k houses.

Thanks in advance.

 

[Dose]

Hi Pete,

Just had a look through the Geelong Advertisers real estate section today and you will get a very nice home for $500 thousand. I actually think Geelong is very reasonable priced at the moment For example, there are houses in Highton (10 min drive from Geelong CBD) for around $399 which are 4 bdrm, two living areas, double garage around 3-4 yrs old. You can buy older style three bedroom homes in other areas (which are also only 10-15 min drive from Geelong cbd) from $210 upwards.
One that appealed to me was in Hamlyn Heights - 4brs, study, 2 bathrooms, formal lounge/dining, dble garage, central heating, security system and inground swimming pool and gazebo - a lovely home- for $425,000. I think that you would probably pay a lot more for a home llike that in sydney.

Also the ring road is coming along very nicely with stage one due to finish next year sometime.


Cheers

Dose

 

[warrioress]

Tac

I heard on the news the other day that only 100 current TAC staff members have signed on with the agreement to come to Geelong. But that leaves another 500 or so places left. I'm sure other TAC staff members will come around in due course. (I think they also propose to pay for their stamp duty if they buy properties)

Logically it seems that this will either introduce many new buyers to the market which will drive up prices, or a large number of renters. Im very new to the game so this is only my opinion. (I have not seen cycles/experiences like more seasoned travellers)

If I had access to larger amounts of equity, I would be buying up. Areas like Hamlyn Heights (older area) seem to be well priced and close. Even South Geelong and East Geelong. I recently bought a block in Geelong West with my boyfriend with the aim to build PPOR. Considering its locality to town, we got it very very well priced.

It would be interesting to hear other Geelongians opinions. Are there many of you out there ?

 

[Peter 14.7]

Hi All

I worked 3 years on NSW gov and relocated a couple of departments.

Despite incentives and very reasonable logic about an improved quality of life. Most employee don't move.

Personally I would however that was before we had a baby and moved to be closer to our family. Now I could move to WA and make a mozta working construction but no thanks.

Most people it seems live where they grow up. Don't like change and remember in the Gov. jobs are advertised internally all the time. Those who don't want to go will find something else in Melbourne before the date.

What this does mean is a number of new jobs in Geelong which I cannot comment on as to impact on the economy. The jobs will be lower grades and it very hard to move up / earn more in Gov. so promotion is limited. But jobs are money.

I think the ring road and improved commuterability to Melbourne is a safer bet for growth.

Peter 14.7

 

[STAR]

Hi All.

Pete W, Do you have a link for the Macquarie deal done in leopold, would be interested in reading?

IMHO I think Geelong has got some great potential for the future, you just have to look at history, with regards to the ring road being built. Remember when the western ring in Melb and the Motorways in Sydney were built, property values soon followed with an increase in equity.

Suburbs that I have been keeping an eye on, are Hamlyn Heights / Herne Hill (older homes bigger blocks possible redevelop in time), Belmont (But a lot of units being built at the moment), East Geelong (a bit more pricey), Newcomb (Good infastructure close to CBD) and even Newtown (once expensive but still good value in some pockets).

Hope this helps.

Cheers Aaron

 

[tubs]

My opinion on Geelong, and I do live there and own 3 properties there is that anywhere close to the ring road will do very well. I think the best performers will be Waurn Ponds and Grovedale (around the Waurn Ponds shopping centre) because people can live out there, but still be close to Melbourne with the Ring Road, and then be close to Torquay on weekends. Plus, the council is investing a whole lot of money out there, like a multi-million dollar swimming centre, there are more and more shops going in and its part of the identified growth corridor for Geelong.

The other area I like in Geelong is Belmont, because its prices are a little behind the rest of Geelong, its close to town and is quite an attractive, character suburb with lots of close shopping.

I live in Geelong West so it looks like we'll be neighbours Warrioress!

Tubs

 

[pete_w]

hi

thanks for all your info and thoughts, it will be interesting to see how it pans out.

STAR, the article appeared in the afr last thursday, so i dont think it is available for free online anywhere, the accquistion only got a breif mention too. i did find this online that mentions leopold http://www.urbanpacific.com.au/pdf/UrbanNewswinter2006.pdf urban pacific is wholly owned by macquarie bank

sorry for the delay in replying!

 

[STAR]

Thanks Pete W,

Interesting reading as I live in Leopold, and I did hear a wisper of something and this just confirms, much appreciated for your time.

Aaron