With Geelong emerging as an international luxury hotspot, an agent told REB his top tips for agents to establish themselves as premier figures in the prestige off-the-plan market.
A recent report identified Geelong’s north-facing waterfront as one of the globe’s hottest luxury markets, among Italy’s Lake Como, Saint-Martin-de-Belleville in the French Alps, and the star-studded Pacific Palisades in Los Angeles.
Interest in the regional town’s luxury market has spiked due to its combination of lifestyle, coastal amenities, and proximity to Melbourne, lying just 75km south-west of the city.
Despite recent data showing the median apartment price had fallen by more than 11 per cent over the past 12 months, the luxury apartment market was experiencing a value boom.
As part of the town’s luxury surge, high-end apartment values have climbed by 31 per cent over the previous five years, including an 8.1 per cent increase in the past 12 months.
McGrath Geelong | Newtown director Jim Cross, who has been involved in 85 per cent of the city’s luxury waterfront apartment transactions, said the regional town’s evolution into a global hotspot had been building over the past decade, driven by ongoing development.
“We have seen the market evolve over the past decade, but especially in the last five years,” Cross told REB.
“What we have seen in Geelong’s apartment market over the last five to seven years is the increase in the quality of the types of dwellings, as well as the volume of square meterage.”
With a modern two-bedroom apartment starting at around $2.1 million and a detached four-bedroom home coming in at more than $2.8 million.
He said that luxury apartments that had previously sold for between $1.5 and $2 million had recently transacted for almost double, at $3.5-$4 million.
Despite becoming a global destination for luxury properties, Cross said the vast majority of buyers in Geelong’s apartment market were locals, typically downsizing from larger homes.
“At that price point, we are seeing very few investors at the top end of town,” he said.
“More recently, those buildings have been commanding such high sales prices that it has squeezed the investor market out of that product.”
The developer connection
With development projects playing a significant role in Geelong’s progression as a luxury destination, Cross said he focused on cultivating strong relationships with those creating the supply.
Cross said he began selling off-the-plan townhouses early in his career, a move that established him as a key figure in Geelong’s development scene.
“What happened was we became an agency of attraction for developers who were looking to tap into that off-the-plan sales market, which was much less prevalent at the time.”
“We were fortunate enough to have a good run in that space and began to specialise in that area of the business, and because of that, when bigger developers came to Geelong, we were on their list.”
Cross said that because pre-sales were important for getting property developments off the ground, understanding developers’ needs and how to market them to potential buyers was key to agents’ success.
He said that while luxury residential properties in major cities were typically highly sought after by investors, marketing them in a regional location like Geelong required a broader scope, which is when he leaned on his national network.
“What we have found in Geelong is that we don’t see the same level of natural interest, so running a national or international campaign is key.”
When selling luxury real estate stock off-the-plan, Cross said that it was essential for agents to create a clear image of what the property will be and what it could become for the buyer.
“You have got to be able to create a vision of the end product, and you have got to be able to create genuine trust between you and the buyer.”
“They are committing to a purchase for a product that they can’t see and hasn’t been delivered yet, so it’s very different to walking people through a house that has existed for years and that they can walk through.”
He said that while listing properties yet to be completed could pose challenges, it could also be an opportunity for agents to cater to a wider range of buyers.
“The exciting thing about the project space is that often complexes have varied options available.”
“When you’re selling a house that is already built, if the house isn’t right for the buyer, there is no opportunity to sell, whereas in the apartment and townhouse space, there is more stock to choose from,” Cross concluded.
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