Geelong Home Building Approvals Rise 34% as New Housing Pipeline Grows

Geelong's home building activity is nearing the level of activity that was recorded in 2022. Approximately 4,000 housing projects are in process, due to a 34% rise in building approvals for the year ending August 2026.

Where are the new homes planned?

Lara is emerging as a major area for new housing in Geelong. It has overtaken Armstrong Creek, Charlemont and Mount Duneed in the number of approved homes.

Together, Lara, Charlemont, Armstrong Creek, Mount Duneed and Ocean Grove accounted for around 60% of dwelling approvals across the region in 2026. Portarlington, Torquay and Corio also recorded a notable number.

The concentration of development in these areas is changing where new housing is being built. It also puts pressure on local infrastructure as more homes are planned and neighbourhoods expand.

For now, the increase in approvals does not necessarily mean that the same number of homes will be ready for buyers soon. Construction costs, labour shortages and interest rates continue to affect the building industry.

Terry Rawnsley, an urban economist at KPMG, said maintaining a steady flow of approvals would be important as Geelong's population grows. But getting projects completed is just as important if the region is to add to its housing supply and address affordability.

Buyers look for lower-priced options

The type of housing buyers can afford is also shaping development. Townhouses and other medium-density homes are becoming part of the response to price pressures in the market.

Dion Planken, Metricon's regional west manager, said strong sales in late 2025 and early 2026 had helped build the company's pipeline across Geelong, Ballarat and Warrnambool. He also pointed to government affordable housing initiatives and an increase in medium-density dwellings as factors behind the rise in approvals.

Some buyers are looking at house-and-land packages priced between $650,000 and $680,000, depending on the size of the block, Planken said.

There is activity on the development side, too. Villawood Properties has opened a display village at its Armstrong Mount Duneed community on Whites Road. The village is planned to feature 32 homes from 19 builders.

Geelong's higher approval numbers are a positive sign for future housing supply. The real test will be how many of those planned homes are eventually built.