Greater Geelong · Melbourne–Geelong Corridor
Lara Property Investment
A strategic location between Melbourne and Geelong.
Photo: You Yangs panorama, Spring 2024 by BobTanGo, CC BY 4.0, cropped and converted to black and white.
Lara occupies an unusual position in the Victorian property market.
It is part of Greater Geelong, but sits directly on the Melbourne–Geelong transport corridor, around 18 kilometres north-east of Geelong’s CBD and about 55 kilometres from Melbourne’s CBD. That gives Lara access to two major employment economies while keeping the character of an established regional township.
Lara is surrounded by significant economic assets: Avalon Airport, the Geelong Ring Road Employment Precinct, GeelongPort, the Melbourne–Geelong rail line, the Princes Freeway and Geelong’s broader healthcare, education and manufacturing economy. It is also still growing, within defined settlement boundaries.
The question isn’t simply whether Lara will grow. It’s whether it has the fundamentals to support sustained housing demand, and which properties are best positioned to benefit.
Why Lara Property Investment Is Worth Investigating
Lara has grown significantly over the past decade. The 2021 Census recorded 19,014 residents, up from around 16,400 in 2016.
Growth is expected to continue. Greater Geelong’s population forecast sees Lara reaching about 24,256 people in 2026 and 29,509 by 2046, well above older council projections of around 22,200 by 2036.
That growth isn’t just an extrapolation of past numbers. The Greater Geelong Planning Scheme directs future development within the Lara settlement boundary, including sequenced residential growth west of O’Hallorans Road. There is an established planning framework for more housing.
Lara Is Not Just a Commuter Town
One reason we find Lara interesting is its relationship with the wider Geelong economy. It sits right beside the Geelong Ring Road Employment Precinct (GREP), one of Greater Geelong’s largest industrial and employment areas.
In Parliament in 2023, Lara MP Ella George described the precinct as around 500 hectares of industrial land with capacity for 10,000 local jobs when fully developed. Investment is continuing: the Kinetic Lara industrial subdivision on Heales Road was launched in 2026, alongside existing occupiers such as Isuzu, Fulton Hogan and PFD Food Services.
The precinct benefits from the Princes Freeway, road and rail access, large industrial sites, and proximity to GeelongPort and Avalon Airport. That creates an important chain:
A residential location with nearby employment can have a stronger underlying demand base than one where almost everyone travels elsewhere for work. Lara’s market doesn’t depend solely on people commuting to Melbourne.
Avalon Airport Adds Another Economic Dimension
Avalon Airport sits a short drive east of Lara, between Melbourne and Geelong. It brings passenger aviation, aviation-related jobs, freight and logistics, tourism and surrounding industrial development.
Getting there used to be a problem. In 2025 the ABC reported workers quitting jobs at the precinct because there was no public transport. Since 15 March 2026, bus route 18 has run seven days a week from Lara Station to the airport, with timetables aligned to staff shifts. It’s the first public bus linking Avalon to the rail network, and it runs from Lara.
We don’t treat an airport as a reason to expect prices to rise. We look at the employment and infrastructure ecosystem that develops around major transport assets, and who might want to live nearby as a result.
Lara’s Transport Advantage
Transport is one of Lara’s strongest fundamentals. The town is served by Lara railway station with V/Line services on the Geelong line, the Princes Freeway, and road connections into Geelong and towards Melbourne. Recent Geelong line upgrades added 68 extra weekend services, with trains every 20 minutes on weekends.
That matters for households who don’t work in Lara itself. Lara can function as a residential base for people working across a much wider area.
Existing infrastructure
- Lara Station and V/Line services
- Princes Freeway
- Route 18 bus to Avalon
- Something residents can use today
Proposed infrastructure
- Lines on a planning document
- Timing and funding uncertain
- Often years away
- Given less weight in our assessment
Unlike some new growth corridors where transport is still being planned, Lara already has an operating regional rail connection. We place considerably more weight on infrastructure residents can actually use today.
Town Centre, Schools and Lifestyle
An established town centre
Lara has an established town centre, and planning policy seeks to keep the commercial role of the Patullos Road shopping strip while allowing future development within the town centre framework. Residents already have supermarkets, shops, cafes, restaurants, medical services, schools, and community and sporting facilities. That’s amenity many newly created estates don’t have, and it supports both owner-occupier and rental demand.
Education and family demand
Lara’s schools include Lara Primary School, Lara Lake Primary School, St Anthony’s School and Lara Secondary College, alongside parks, recreation areas and community facilities. Family-oriented locations matter to investors because the tenant pool extends well beyond young professionals and commuters.
The You Yangs and lifestyle appeal
Lara also offers something purely urban growth corridors often don’t. The You Yangs Regional Park rises just north of town, and planning seeks to retain Lara’s rural landscape setting and views to the ranges.
Transport connectivity + established services + employment access + open space.
That combination is valuable when considering long-term owner-occupier appeal.
The Lara Property Market Today
The REIV’s latest data for Lara gives a useful snapshot:
| Lara | Median price | Median rent | Yield |
|---|---|---|---|
| Houses | $740,000 | $580 pw | 4.1% |
| Units | $478,000 | $480 pw | 5.1% |
| Regional Victoria houses | $667,000 | — | — |
Houses sit above the regional Victorian median, reflecting Lara’s position in the Geelong–Melbourne corridor, and there is a substantial gap between house and unit entry prices. Homes are selling in around 33 days.
The median isn’t “the price of a Lara property”
A three-bedroom house has a median of about $652,000 and a four-bedroom about $765,000. Beyond bedrooms, prices vary widely with land size, location, age and condition. Lara contains older homes on larger blocks, maturing newer estates, current growth areas and future development land, and each has different investment characteristics.
Established Lara
- Larger blocks and established streets
- Greater scarcity
- Land value underpinning price
- Mature amenity
Newer development
- Depreciation benefits
- Lower early maintenance
- Modern, energy-efficient layouts
- But more competing supply
Lara’s Future Housing Supply
Lara has a meaningful housing pipeline. Forecasters assume around 3,400 dwellings on major sites plus about 1,200 infill dwellings between 2022 and 2046. The main growth areas are at different stages:
| Area | Status |
|---|---|
| Lara West Precinct Structure Plan, bounded by Bacchus Marsh, Patullos, Windermere and O’Hallorans Roads | Approved 2014, developing in stages |
| Manzeene Village, between Patullos, O’Hallorans and Kees Roads | Development plan building out |
| Lara South East (Amendment C444), near Canterbury Road East and the Princes Highway | Awaiting approval sent to the Minister September 2026 |
The South East proposal, as originally exhibited, covered about 114 hectares with around 600 homes plus industrial and business land. Parts of Lara West, including the West Gateway and Patullos Road areas, also need further masterplanning for staging, infrastructure, stormwater and environmental issues before they can proceed.
We don’t treat every lot on a long-term structure plan as immediately developable. But a pipeline this size tells investors something important: Lara will keep adding homes.
Supply is both an opportunity and a risk
Population growth creates demand. Housing development creates supply. If thousands of similar properties can be built around your investment, it isn’t necessarily scarce, and that can affect rental competition, resale competition, rental growth, capital growth and buyer demand.
So we ask: what makes this particular property difficult to replace?
Lara Flood Risk
There is another issue that deserves specific attention. Lara is vulnerable to both stormwater and riverine flooding: its flat terrain causes widespread shallow flooding, and Hovells Creek runs through the town. Significant floods were recorded in 1983, 1995, 2005 and 2010, among others.
Council’s response, based on the Lara Flood Study 2020, includes updated flood overlays, a Hovells Creek catchment strategy and two proposed drainage projects: a Lipson Drive pipe and open drain, and Kyema Drive pumps and rising mains. Both are proposals, and Council may seek contributions from benefiting landowners.
This is exactly the kind of issue that should be assessed property by property:
- Flood overlays and planning controls
- Drainage and site levels
- Flooding history of the street
- Insurance availability and cost
- Surrounding development
A good location doesn’t eliminate property-specific risk.
Lara’s Biggest Investment Strength
We believe Lara’s biggest strength is its position at the intersection of several economic and transport systems.
Melbourne
Access to Melbourne and the western metropolitan economy.
Geelong
Access to one of Victoria’s major regional economies.
GREP
A major industrial and employment precinct next door.
Avalon
Airport and aviation-related economic activity.
GeelongPort
Major freight and trade infrastructure.
Transport
Rail, freeway and a new airport bus link.
Housing
Established streets plus future residential development.
Lifestyle
Township character with the You Yangs on the doorstep.
Our view
More economic depth than Lara’s population size suggests.
But Lara isn’t for every investor
An investor chasing maximum rental yield, high-density apartment exposure, strong land scarcity, an inner-city lifestyle or a very low entry price may be looking for something different. For an investor seeking affordability, population growth, employment access, transport, established amenity and future development together, Lara deserves consideration.
What Makes an Investment-Grade Lara Property?
Strong location
Close to transport, schools, shops and employment.
Genuine land value
Price supported by the land, not just the building.
Broad tenant appeal
Suits families and working households.
Owner-occupier appeal
Somewhere people would genuinely want to live.
Limited competition
Avoiding estates releasing large volumes of near-identical homes.
Quality construction
Particularly relevant for newer properties.
Sensible price
Supported by comparable sales.
Manageable supply
Knowing what is likely to be built nearby.
Flood and planning checks
Especially important in Lara.
Lara and the Broader Geelong Market
Lara shouldn’t be seen as an alternative to Geelong. It is part of the Geelong economy, but offers a different type of market: lower-density housing, regional rail, closer proximity to Melbourne and Avalon, access to northern Geelong employment, a township environment and future development potential. That makes it a complementary part of the wider Geelong investment story.
The Geelong market has momentum. In January 2026, Hotspotting reported a 29% rise in Geelong sales activity over 12 months, with more than 75% of Geelong suburbs ranked positively. Terry Ryder called Geelong “a real standout” among regional markets.
Hotspotting’s method puts weight on sales activity and the local economy rather than past price growth. That fits the way we assess Lara. We don’t want to buy because somebody calls it a hotspot. We want to understand what is driving demand.
We Don’t Believe in Buying a Suburb
We don’t start with “which suburb is going to boom?” We start with the investor.
The right way
- Investor → Strategy → Location → Property
Not
- Property → Suburb → Hope
Your investment objectives, budget, borrowing capacity, cash-flow needs, existing portfolio, timeframe and risk tolerance should decide what type of property you consider. Only then do we decide whether Lara belongs on the shortlist. Read more about setting the purpose of your investment.
Lara Property Investment: The Bottom Line
Lara has developed into much more than a residential suburb between Melbourne and Geelong. It sits within a significant economic corridor supported by:
- Geelong’s expanding economy
- The Geelong Ring Road Employment Precinct
- Avalon Airport and its new bus link
- GeelongPort
- Regional rail and the Princes Freeway
- Established schools and services
- Continued population growth
- Future residential development
The market is established too, with a median house price around $740,000, median house rent around $580 a week and a gross yield of about 4.1%.
Lara’s future housing supply and flood history mean investors need to be selective. The opportunity isn’t “buy Lara”. It’s identify the right property within Lara, one that makes sense for you and your broader strategy.
Looking at investment property in Lara?
We Look at the Investor First
Then the strategy, the location and the property. Talk to Investment Property Melbourne, powered by properT network, about whether Lara fits your investment strategy.
Geelong Property Investment and Armstrong Creek & Mount Duneed
Greater Geelong’s wider market and its southern growth area.
Werribee & Wyndham Property Investment and Sunshine Property Investment
The Melbourne end of the corridor.
Time to Invest in Geelong and Lara
Our earlier look at Lara’s demographics, vacancy and yields.
Melbourne Investment Property and Property Investment Locations
Our wider Melbourne and Victorian research.
Lara Property Investment Resources
Population and planning
General information only. Investment Property Melbourne and properT network do not provide personal financial, legal, tax or lending advice. Figures are from the sources and periods stated and may change. Planned projects and rezonings may change or be delayed. Property investment carries risk, including the risk of loss. Seek independent professional advice before making any decision.
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