Geelong Investment Property: Analysing Yield, Long-Term Growth and Strategic Opportunities in Highton, Belmont and Torquay

Summary:

• Geelong is entering a growth phase and is well-positioned for investors seeking strong, data-backed investment opportunities outside Melbourne.
• Suburbs like Torquay, Highton, Geelong West and Belmont offer distinct advantages that suit different investment strategies, from value growth to high rental yields.
• A Loan Market broker can help you understand the Geelong market and assist you in securing a finance solution that supports your investment objectives.

If you’re an investor assessing whether Geelong is a good investment location in 2026, the outlook is considered positive. 

Geelong has stabilised after slower growth in the past two years and is showing early signs of entering a growth phase. Historically, the city lags behind Melbourne by six to twelve months, meaning its upswing often emerges later but lasts longer. For long-term property investors, this delayed cycle can be a strategic advantage.

The region has delivered annual capital growth in the 6-8% range across several suburbs over the past decade, according to PropTrack’s data. In suburbs like Norlane, Bell Post Hill and North Geelong, median house prices doubled between 2015 and 2025.

With a balanced mix of stability, rental yield and medium-term capital appreciation, Geelong is a good investment location in 2026. The fundamentals driving this performance remain intact and are expected to continue to strengthen over the next 12 months.

Geelong investment property foundation: economic and infrastructure drivers

Economic stability

Geelong’s economic base is broad and resilient, anchored by major employers such as Barwon Health, Deakin University and the wider healthcare and social services sector. These institutions support a large and stable workforce, creating consistent demand from high-quality long-term tenants.

For investors targeting suburbs such as Highton or Geelong West, a large employment base indicates sustained rental demand and reduced vacancy risk.

Population growth

Geelong is currently home to around 300,000 residents and is forecast to reach 442,000 residents by 2046. This population growth is one of the city’s most powerful investment drivers. Strong population inflow, combined with constrained supply and slow construction pipelines, has created a persistent undersupply of housing. 

Listing volumes across Greater Geelong remain low. NAB’s Regional Victoria Property Market Insights Q3 2025 shows that house listings fell 8.0% over the year to September 2025, and unit listings dropped 16.6%. The imbalance of demand versus supply will support strong rental and put upward pressure on property values.

Infrastructure investment

Significant infrastructure projects further reinforce Geelong’s position as a major regional hub. 

This includes the Nyaal Banyul Geelong Convention and Event Centre, expected to be completed in 2026. This will support more tourism and business activity, with retail and restaurant spaces and a large public plaza enhancing the Geelong waterfront precinct.

In addition, health precinct upgrades and ongoing rail investment are strengthening the Geelong–Melbourne commuter corridor. These projects improve liveability and job commuting, two essential components of sustained property demand.

Choosing the right location: suburb investment analysis

Choosing the right location for a property investment requires a careful analysis of suburb-specific data, as each area offers a unique combination of price points, rental yields, and lifestyle advantages. In the Greater Geelong and Surf Coast region, several suburbs stand out as strong performers for investors seeking reliable growth. From the high-end coastal appeal of Torquay to the consistent capital growth prospects in Geelong West, there is a location suited to almost every investment strategy.

For investors prioritising a premium coastal lifestyle, Torquay is the premier choice. Located within the Surf Coast LGA, it features a median house price of approximately $906,926 and a unit yield of 3.4%. Its primary advantage lies in its massive tourism appeal and access to the most desirable beaches in the region. Meanwhile, Highton offers a low-risk, premium growth strategy with a median house price of $895,000. It attracts strong owner-occupier demand due to its superior schools and local amenities, providing a stable unit yield of roughly 4.2%.

In the inner suburbs, Geelong West is a highlight for those focused on gentrification and lifestyle. With a median price of $842,500, it boasts the highest unit yield among inner areas at 4.8%, driven largely by tenants seeking the vibrant culture of Pakington Street. Alternatively, the Geelong CBD and Inner area provides strong unit cash flow with a 4.5% yield and a median price of $843,750. This area is particularly effective at attracting a professional tenant base looking for proximity to the city centre.

Finally, Belmont serves as an excellent option for investors seeking balanced value and stability. It is the most affordable of the highlighted suburbs, with a median house price of $693,500 and a healthy 4.3% unit yield. Its central location and strong demand for family homes make it a reliable choice for long-term investment.

If you are an entry-level buyer considering a purchase in an affordable suburb like Belmont, it is a good idea to read our complete guide to the $10,000 grant, stamp duty exemptions and federal schemes available to Geelong first home buyers.

Rental market conditions

Rental conditions across Greater Geelong remain tight, with vacancy rates below 1.5% in many key suburbs, according to SQM Research. 

Low supply and steady inward migration, mainly from Melbourne, are placing upward pressure on rents. For investors, these conditions support stronger yields and more efficient holding costs, particularly for units in Geelong West and the CBD, where cash flow performance tends to be strongest.

Financing your Geelong investment property

Buying an investment property in Geelong requires a lending strategy that aligns with the type of property you’re purchasing and your investment goals.

The most popular investment loan options are:

1. Interest-only loans

Interest-only loans reduce monthly repayments because you pay only the interest portion initially (typically for a period of one to five years). This can help you maintain liquidity, or you could direct surplus cash towards additional acquisitions or holding costs.

2. Principal and interest loans

These loans can suit investors prioritising long-term equity growth. Monthly repayments are higher than interest-only loans, but the principal reduces over time, improving net asset position and lowering total interest paid across the life of the loan.

3. SMSF investment loans

These loans can be a great option for buyers purchasing through a self-managed super fund. SMSF loans have strict investment regulations and lending criteria; however, they come with potential tax benefits. For example, rental income is generally taxed at 15%, likely significantly lower than individual marginal tax rates. 

Why you should consider a pre-approved loan

Pre-approval confirms borrowing capacity, allowing you to act decisively, especially in competitive markets. 

Working with a mortgage broker during the pre-approval process lets you compare loan structures and terms so you can select the option that best aligns with your investment strategy.

It also gives you the opportunity to factor Victorian land tax obligations into your loan-to-value ratio (LVR) settings, ensuring you have full visibility of your total holding costs before moving from conditional approval to final loan approval.

Next steps to buying an investment property in Geelong

Geelong is set to enter a growth cycle, supported by a stable economic base, sustained population inflows and significant infrastructure investment. The region offers a compelling mix of value and growth potential, from strong Belmont investment fundamentals to appealing Highton rental yield prospects.

To understand the specific drivers behind this recovery and why these key suburbs are positioned at the forefront of the market, it is a good idea to read our Geelong property growth forecast for 2026, which outlines why Highton, Belmont and Torquay are leading the next cycle.

For investors preparing to acquire a property asset in Geelong, a Loan Market broker specialising in the Geelong market can help you select the right loan structure and get pre-approved so you can act fast before full market recovery takes hold. 

Thinking about investing in Geelong and want to understand your borrowing options? A Loan Market Geelong City broker can guide you through your choices and help you secure a loan that aligns with your investment goals.

FAQs

1. Is Geelong a good investment location in 2026?

Investors are increasingly considering Geelong due to its economic stability, strong rental demand and delayed growth cycle relative to Melbourne. Many premium suburbs have held value well and the region is expected to deliver good results in the next phase of growth.

2. Which is the best Geelong suburb to invest in?

It depends on your investment goals. Higher-value suburbs such as Highton and Torquay appeal to long-term growth seekers. Geelong West and the CBD are delivering higher rental yields and stronger cash flow, while Belmont offers an affordable entry point for first-time investors. 

3. Do I need a pre-approved loan before making an offer on a Geelong investment property?

No, but pre-approval is highly recommended. It confirms your borrowing capacity, strengthens your negotiation power and allows you to act quickly when you spot a suitable property.