News Corp Australia
First published 3 Jan 2026, 5:00am
3 Strawberry Close, Grovedale, is on the market for $950,000.
Geelong has been tipped as a Victorian investor hotspot in 2026, joining Ballarat and Melbourne coastal enclaves as prime picks for the coming year.
Property Investment Professionals of Australia chair Cate Bakos has named two affordable Geelong suburbs among her top choices 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 had been in recovery for a number of months after a downturn in recent years, though had only shown modest growth so far.
But with other parts of the country having risen substantially in the past few years, the state was starting to look like it had a prospect of a broad lift in 2026.
“There’s been a lot of recent demand from investors for Victoria and it’s a value proposition,” Ms Bakos said
“But you do need to be picky. A lot of people are looking for a lower priced house in some of the areas for lower socio-economic demographics — and they will have challenges.”
Noting that following the crowd in these areas could be “a danger”, Ms Bakos said it was possible that investors would outpace owner-occupiers and warp local markets and potentially cause property bubble conditions.
Property Investment Professionals of Australia chair Cate Bakos.
She said Herne Hill was a great proposition, with some beautiful character homes and a median house price just above $700,000.
“Geelong’s west has continued to flourish and Herne Hill is tucked just behind Manifold Heights, which has performed well in Geelong’s post-Covid recovery,” she said.
“My favourite attribute in Herne Hill (aside from the pretty houses on offer) is the rail trail walk; the old disused rail is now a tranquil track between parklands.”
Grovedale had a surge in investor activity in the latter half of 2025, as affordable older homes with scope for improvements on larger blocks proved an attractive combination.
“Grovedale’s median house price of $675,000 puts family homes within reach in Geelong’s established south,” Ms Bakos said.
The renovator’s delight at 5 Wirksworth St, Herne Hill, sold for $595,000 in December.
Ray White, Highton agent Ben Powe said a large chunk of Grovedale listings were selling to buyers’ advocates acting of behalf of interstate investor clients.
But he said this was putting pressure on first homebuyers competing for the same entry-level properties.
“At the moment I would say, like for like, houses are going for more in Grovedale than Highton,” Mr Powe said.
“If it’s a four-bed, two-bath, ’80s built house in Grovedale they seem to be paying more, which I’ve never seen before.
“It would be 50 per cent buyers’ advocates and for the most part they’re pushing out first homebuyers and paying the big dollars.
This four-bedroom house at 156 Grove Rd, Grovedale, is listed with price hopes of $680,000-$740,000.
“I think they like all the amenities around Waurn Ponds, the train station, Deakin, Epworth, shopping centre.”
Property analyst Terry Ryder, founder and managing director of Hotspotting, said big infrastructure investment was typically a precursor to rising buyer demand and prices.
“It creates jobs and from that comes demand for real estate,” he said.
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