Geelong Market Shifts as Policy Changes and Planning Decisions Take Hold

The City of Greater Geelong has announced key changes to its planning scheme, effective as of June 2026, which are expected to influence the local property market. One of the primary changes involves amendments to zoning regulations in areas such as Armstrong Creek and the Geelong CBD, aiming to promote more dense and mixed-use development.

These policy changes matter now because they come at a time when the Melbourne property market is experiencing a slowdown, with auction clearance rates at their lowest in years. As a result, areas like Geelong, which offer a more affordable alternative to Melbourne while still being within commuting distance, are under scrutiny. The desire for home ownership remains strong, especially among younger generations, and areas with potential for growth and development, such as the Surf Coast, are likely to attract attention.

Local Implications and Initiatives

In Geelong, specific neighborhoods like Highton, with its family-friendly amenities including homes with features like basketball courts, are seeing listings emerge at premium prices, circa $2 million. Meanwhile, initiatives like the Geelong CBD renewal project are set to enhance the appeal of the city center, potentially boosting property values in adjacent areas such as Malop Street and Moorabool Street. Organisations like the Geelong Chamber of Commerce and the Committee for Geelong are closely watching these developments, as they have significant implications for local businesses and the community.

Data from recent property sales indicates that the median house price in Geelong remains around $680,000, relatively stable compared to the fluctuations seen in Melbourne. However, with the new planning scheme changes, there's anticipation of increased development activity, particularly in growth areas like Armstrong Creek. As of May 2026, the average land price in Armstrong Creek was around $400,000 per lot, with some estates offering house and land packages starting from around $620,000. These prices, combined with the area's amenities and proximity to Geelong, make it an attractive option for families and first-home buyers.

Looking ahead, potential buyers and investors should closely monitor how these policy changes and planning decisions unfold. Practical advice includes keeping a close eye on listings in areas earmarked for development, such as the Geelong CBD and surrounding suburbs, and considering the long-term potential of investments in growth areas like Armstrong Creek. With the right information and timing, individuals can make informed decisions that align with their goals, whether that's finding an affordable first home or identifying opportunities for investment and rental income.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.