Geelong has been found to be one of the world’s hottest luxury housing markets, outranking several of the globe’s heavy hitters, according to the latest data from Knight Frank.

According to the latest data from Knight Frank’s The Wealth Report, the regional port city located south-west of Melbourne is set to outperform alongside luxury markets such as Italy’s Lake Como, Saint-Martin-de-Belleville in the French Alps, and the star-studded Pacific Palisades in Los Angeles.

The data showed that a modern two-bedroom apartment in Geelong typically started at around $2.1 million, while a detached four-bedroom home near the water exceeded $2.8 million.

The report found that interest in the Geelong waterfront, which sits on the north-facing shore of Corio Bay, from high-net-worth buyers, was driven by its combination of coastal amenity, infrastructure investment and proximity to Melbourne.

McGrath Estate Agents’ Geelong Newtown principal, Jim Cross, said the region’s property market had seen a noticeable increase in buyer demand in recent times.

“The Geelong waterfront has experienced an amazing transformation with some of the country’s finest property developers choosing to invest and develop a much more sophisticated type of apartment project, which has reshaped lifestyle living in our city,” Cross said.

He said the market had become highly sought after by a wide range of buyers, including local, interstate and international purchasers motivated by lifestyle.

“The area is attracting sophisticated buyers due to the amazing views over the north-facing bay and the relaxed lifestyle on offer,” he said.

McGrath Estate Agents’ national head of research, Michelle Ciesielski, said the combination of lifestyle and proximity to Melbourne had established the region as one of the most sought-after markets in Australia.

“Geelong’s waterfront has evolved into a highly compelling location, offering a combination of accessibility, amenity and long-term growth,” Ciesielski said.

“New apartments built over the past five years have lifted the benchmark for property values, with 31 per cent growth in apartment prices during this time and 8.1 per cent of this being recorded this year.”

Ciesielski said the nearby public and private investment, including enhanced transportation links to Melbourne and two nearby airports, had increased the region’s popularity among the full range of potential buyers.

“Buyers include Melbourne lifestyle movers, professionals, downsizing retirees and investors seeking coastal areas with steady long-term prospects.

“Luxury residential buyers are paying for expansive views across Corio Bay and a vibrant, walkable foreshore,” Ciesielski added.

This article was first published on Real Estate Business, a sister-brand of Property Buzz.