Rents are falling in a growing number of Geelong suburbs, but state government policies ramping up the cost of owning a rental home continues to reach hit renters’ hip pockets.
New PropTrack quarterly data reveals median weekly asking rents fell in 10 suburbs across the Geelong region in the three months to July, and were unchanged in 20 more.
But there were still 27 areas where rents for houses or units increased between $3 and $40 a week.
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Jellis Craig Geelong Property Management director Renee Reynolds said a continued sell-off of ex-rental properties was increasing demand for accommodation, holding up rent prices.
Ms Reynolds said it wasn’t only older-style homes where it wasn’t feasible for owners to pay for upgrades to meet new compliance standards that were leaving the rental market.
Jellis Craig Geelong Property Management director Renee Reynolds.
“There are also quality properties being sold off because mum and dad investors just can’t afford to hold on,” she said.
Rental demand continues to be price sensitive with homes priced around $500 a week being rented quickly, while properties priced above $750 a week were lagging.
“Come November that will change for the higher price bracket as people tend to be moving for school and relocating for the new year. A lot of executive rentals come up around that time.”
Three bedrooms: The house at 11 June Ave, Hamlyn Heights, is advertised to rent for $450 a week.
Rents were down between $2 and $30 a week for houses in Barwon Heads, Hamlyn Heights, Newtown, Ocean Grove, Waurn Ponds, Herne Hill, and Winchelsea, and for units in Ocean Grove, Herne Hill and Geelong West.
The suburbs with the biggest rise in rents included Fyansford, Anglesea, East Geelong, Armstrong Creek and Portarlington for houses and East Geelong, Hamlyn Heights, Torquay, Norlane and Manifold Heights for units.
Ms Reynolds said rent prices tended to drop in winter due to the lower seasonal demand, except where there was little stock available.
Three bedrooms: The new townhouse at 31A Gwynne St, Hamlyn Heights, is advertised to rent for $625 a week.
Interstate investors, acting through buyers advocates, were particularly busy, but cost pressure on existing landlords still had a greater impact, she said.
But extremely low vacancy rates and holding rents were attracting new people to purchase investment properties and bring new rental stock to the market, she said.
“We are seeing a new influx of investors purchasing and new stock coming to the market, which is great because we need it.”
Three bedrooms: 17 Darling St, East Geelong, is advertised to rent for $520 a week.
“Until something changes in Victoria, what I can see is there’s going to be limited supply, which will increase rental prices,” she said.
Mr Reynolds, who is a member of the REIV board, said the industry lobby continued to advocate for change with the state government.
PropTrack director of economic research Cameron Kusher said while rents were increasing in the Geelong region overall (up 1 per cent to $500 a week), the rate of growth was “pretty slow”.
Two bedrooms: The contemporary townhouse at 2B Wren St, Norlane, is advertised to rent for $440 a week.
But the suburb data showed Geelong was no longer affordable, compared to Melbourne, he said.
Mr Kusher said new figures show there was 5.7 per cent more rental stock in July than the same time last year, with a 23.5 per cent boost in new listings.
A slowdown in international student numbers and a trend of more people moving into cheaper accommodation or sharehousing could be making more homes available to rent, he said.
PropTrack director of economic research Cameron Kusher.
“I think Melbourne and Geelong is on a bit of a counter-cyclic play at the moment.
“You’re not seeing much price growth. Brisbane prices are getting pretty close to being more expensive than Melbourne.
“So even though the government is punishing investors with more tax, I think people are saying Melbourne is a city of 5m-plus people, it’s going to be the largest city in the country and that includes Geelong.
“Things are looking reasonably cheap in the area compared to other parts of the country.”
MEDIAN WEEKLY RENTS FOR HOUSES IN GEELONG SUBURBS:
| Suburb | Median rent July 2024 | 3-month change | 12-month change |
| Anglesea | $625 | 4.2% | 2.5% |
| Armstrong Creek | $520 | 4.0% | 4.0% |
| Bannockburn | $525 | 1.0% | 5.0% |
| Barwon Heads | $650 | -4.4% | 0.0% |
| Bell Park | $460 | 2.2% | 2.2% |
| Bell Post Hill | $480 | 0.0% | 4.9% |
| Belmont | $480 | 0.0% | 4.3% |
| Charlemont | $500 | 2.0% | 4.2% |
| Clifton Springs | $465 | 1.1% | 3.3% |
| Corio | $400 | 0.0% | 6.7% |
| Curlewis | $495 | 1.0% | 7.6% |
| Drysdale | $500 | 0.0% | 4.2% |
| East Geelong | $520 | 4.0% | 10.6% |
| Fyansford | $650 | 4.4% | 4.4% |
| Geelong | $523 | 0.5% | 4.5% |
| Geelong West | $520 | 2.0% | 4.0% |
| Grovedale | $500 | 1.0% | 4.2% |
| Hamlyn Heights | $485 | -3.0% | 5.4% |
| Herne Hill | $470 | -1.1% | 4.4% |
| Highton | $550 | 1.9% | 5.8% |
| Jan Juc | $680 | 0.0% | 6.3% |
| Lara | $550 | 0.0% | 5.8% |
| Leopold | $490 | 2.1% | 4.3% |
| Manifold Heights | $480 | 2.1% | 1.1% |
| Marshall | $493 | 1.5% | 2.6% |
| Mount Duneed | $530 | 0.0% | 1.9% |
| Newcomb | $440 | 0.0% | 2.3% |
| Newtown | $530 | -2.8% | 1.9% |
| Norlane | $380 | 2.7% | 5.6% |
| North Geelong | $430 | 0.0% | 0.0% |
| Ocean Grove | $560 | -2.6% | -3.4% |
| Point Lonsdale | $570 | 0.0% | -0.9% |
| Portarlington | $495 | 3.7% | 10.0% |
| St Albans Park | $450 | 0.0% | 4.7% |
| St Leonards | $470 | 1.1% | 4.4% |
| Thomson | $425 | 0.0% | 1.2% |
| Torquay | $650 | 0.0% | 0.0% |
| Waurn Ponds | $523 | -1.4% | -3.2% |
| Whittington | $420 | 0.0% | 5.0% |
| Winchelsea | $438 | -0.6% | -1.7% |
Source: PropTrack. Three-month and 12-month change in median weekly rent by suburb.
MEDIAN WEEKLY RENTS FOR UNITS IN GEELONG SUBURBS:
| Suburb | Median rent July 2024 | 3 month change | 12 month change |
| Bell Park | $420 | 0.0% | 5.0% |
| Belmont | $430 | 2.4% | 7.5% |
| Corio | $320 | 0.0% | -4.5% |
| East Geelong | $420 | 10.5% | 10.5% |
| Geelong | $500 | 0.5% | 4.7% |
| Geelong West | $430 | -1.1% | 7.5% |
| Grovedale | $425 | 0.0% | 1.2% |
| Hamlyn Heights | $450 | 4.7% | 12.5% |
| Herne Hill | $325 | -1.5% | -1.5% |
| Highton | $410 | 0.0% | 2.5% |
| Lara | $415 | 1.2% | 6.4% |
| Manifold Heights | $395 | 2.6% | 9.7% |
| Newcomb | $400 | 0.0% | 5.3% |
| Newtown | $440 | 0.0% | 7.3% |
| Norlane | $370 | 2.8% | 6.5% |
| Ocean Grove | $450 | -2.2% | -9.1% |
| Torquay | $550 | 3.8% | 0.0% |
Source: PropTrack. Three-month and 12-month change in median weekly rent by suburb.
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