Rent pain eases for some
Region seeing more moderate rises than in Melbourne
Data showing rents are falling in a handful of Geelong suburbs offers a glimmer of hope for tenants struggling with housing costs.
PropTrack’s rent report reveals median weekly rents stabilised or dropped in more than half of the region’s suburbs in the March quarter.
Geelong West recorded the biggest fall, with $20, or 3.85 per cent, shaved off the typical $520 weekly leasing of a home.
Tenants are also paying $10 less a week for units in Corio and East Geelong, while those leasing a house and unit in Herne Hill are saving the cost of a coffee.
But it is not all good news for tenants, who still need to stump up $30 a week extra to cover rents in 26 rising markets such as Portarlington, where the typical price jumped 6.67 per cent to $480 a week.
PropTrack economist Anne Flaherty said while some suburbs had seen significant
growth, it was encouraging to see rents generally rising at a more moderate pace than the “staggering” rates seen in Melbourne.
However, Ms Flaherty said conditions remained challenging for renters due to the low vacancy rate of 1.15 per cent across regional Victoria.
“When it comes to Geelong suburbs that have seen the biggest
growth, they tend to be units and they are priced below that $500 level, so it shows we are seeing more and more renters looking for those more affordable suburbs,” she said.
“Some of the suburbs that saw really strong growth during the pandemic we are now seeing growth hold steady and in some cases even decline slightly, so it does mean there’s a little bit more breathing room in those suburbs.”
Hayeswinckle property management director Jessica Scholer said a three-beroom house with a weekly rent under $550 a week was the holy grail for many tenants.
Ms Scholer said cheaper units had also exploded in popularity, with one recent two-bedroom listing in Herne
Hill attracting 50 inquiries in only a few days.
“We are still finding that demand is fairly high for rentals across the board and one thing that we are definitely seeing is that properties that are priced from under $550 per week are moving really well,” she said.
“Anything above $550 or $600 is taking a lot longer to move because people are more budget conscious.”
She said Grovedale, Whittington and St Albans Park were among in-demand areas, while properties in Geelong West were taking longer to fill.
Ray White, Lara, director Jo Boothroyd said stories of greedy landlords jacking up rents did not reflect the reality in Geelong.
“Rents are going up $5 or $10 but what we are finding at the moment is tenants are dictating the prices, not the landlord,” Ms Boothroyd said.
“If we have a vacant property and the owner says, ‘I can try for that amount’, they’re just not getting any applications.”
She said the sell-off of investment properties – which made up 30 per cent of her office’s sales – was one of many challenges putting pressure on Geelong’s rental market.
This was compounded by people staying in the rental market longer because of concerns about building, delays in land settling and a shortage of tradies.