Happy to come up short
GEELONG’S booming short stay accommodation market is delivering lucrative returns for investors seeking an alternative to traditional rentals.
Strong demand from visiting workers has spurred a postCOVID recovery that’s seen returns bounce back up to 8 per cent in managed properties.
Geelong Short Stays operations manager Jon Metrikas said investors were reaping the reward of a current occupancy rate above 85 per cent in the 60 properties he oversees.
He said the cancellation of 9000 nights during lockdown last year prompted a shift to midweek bookings for returning expats and visiting workers, who continued to drive demand.
Geelong’s growing popularity as a holiday destination and overseas travel bans have also fuelled leisure bookings out of Melbourne.
“We are in a fairly quiet period at the moment but everyone who’s in is in for longer so there is less changeover,” Mr Metrikas said.
“Mondays used to be our busiest day, now it’s Fridays because people are coming up for four nights midweek.
“You get groups of workers coming in who want fully furnished places.”
He said the occupancy rate was 92 per cent in summer and 80 per cent in winter preCOVID, but was more consistent now and providing added security to investors.
He said they could typically bank on double the return of a
long-term rental from a short stay property in Geelong.
A Newtown house set to be auctioned at 25 Roebuck Street offers a walk-up start for buyers wanting to tap into an established short-term rental.
The four-bedroom, twobathroom California bungalow currently earns $1500-$1800 a week and is sought after for its spacious accommodation and proximity to Geelong’s CBD.
Gartland Property Geelong agent Tom Luxton said it offered a hassle-free and lowmaintenance investment option with lots of scope in a blue-chip location.
A price guide of $1.2m$1.3m has been set ahead of the May 29 auction.
“It’s good for those that are looking for a short-term option,” Mr Luxton said.
“It’s a really great option for someone until they have sold their place in Melbourne or who wants to move in later on and possibly do some work.”
A large kitchen is at the centre of the home’s rear living zone, which incorporates two lounge areas, a dining space and doors onto a covered deck.
Mr Metrikas said the property had repeat guests and was one of the few four-bedroom houses on his books.