Pressure drops for renters amid signs Geelong market is easing

Renters face less competition amid signs that price growth, demand are finally easing in Geelong’s rental market. See the city’s top suburbs for rents.

Unit rents rose 21 per cent in South Geelong this year.

New signs showing that pressure in Geelong’s rental market is easing will give some hope to people trying to secure a home to lease.

Median weekly asking rents in Geelong increased by 8.6 per cent in 12 months to June, but PropTrack director of economic research Cameron Kusher said the annual rate of growth was slowing.

The rate of increase in rents will still be hard for prospective tenants as other living costs rise, with rents in the top 20 suburbs across Geelong climbing between 8 and 23 per cent last year, the data from the PropTrack June Rental Report showed.

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But Mr Kusher said most of the indicators were weakening a bit and the impetus to move out of Melbourne is not what it was even nine months ago.

“Some people that moved during the pandemic will now return to the big cities, while others deciding to stay will look to purchase their own home.”

Median weekly rents for units in Belmont rose 10 per cent this year.

Mr Kusher said rents were on track to rise, but at a slower rate as competition eases. He said increasing rental stock was the solution to addressing affordability.

Rental on the market had lifted 4 per cent, while searches on properties had dropped 12 per cent.

“Listing volumes are increasing, things are taking a bit longer to lease, and demand is not as strong as it was.”

McGrath, Geelong general manager Donna Cross said a drop in inquiry levels in the past three months had led to a softening of prices in some suburbs to reduce the time homes sat vacant.

The median weekly rent for houses in Breakwater rose 8 per cent this year.

“Some suburbs are still retaining their price and have really low vacancy, but for other suburbs where after Covid rents went up by $50 to $60 (a week), it’s now coming back $20 and it’s taking a bit longer to lease,” she said.

But demand for homes was higher than before Covid, she said.

“We got to the point where we were having between 20 and 30 applications and 30 people turning up for all of our open for inspections, which is just unheard of here. That has definitely died down.

PropTrack director of economic research Cameron Kusher says there are signs the pressure is easing in Geelong’s rental market

“We’re going back to 20 (applications), two years ago we might get 10 or 15. It is still a buoyant situation.”

Ms Cross said 130 rental law reforms, such as minimum standards and gas and electric appliance servicing, and a rise in insurance costs had contributed to higher rents once the moratorium on raising prices was lifted last year.

Demand was highest for family homes anywhere but especially in Geelong West and Newtown, while Herne Hill, Newcomb, Armstrong Creek and Curlewis were strong for renters seeking a newer property at an affordable price.

Geelong West: 15 Catherine St is listed for $470 per week.

Suburbs with a low rental stock experienced the biggest hikes, with house rising 21.3 per cent to $455 a week in Indented Head and units at Point Lonsdale up 58.6 per cent to $595.

Geelong suburbs that see far higher volume of rental properties also experienced strong increases in rental prices, such as 13 per cent in Geelong West at 10 per cent in Norlane for houses and 10 per cent in Belmont for units.

HOUSES: TOP 20 GEELONG SUBURBS

Suburb  Median weekly asking rent  Number leased (12 months) 12 month % growth Indented Head $455 18 21.3% Jan Juc $658 66 19.5% Portarlington $440 71 18.9% Drysdale $450 46 16.9% Manifold Heights $450 37 13.9% Geelong West $475 263 13.1% Ocean Grove $550 301 12.2% East Geelong $470 97 11.9% Clifton Springs $430 129 11.7% Thomson $390 56 11.4% North Geelong $400 93 11.1% Torquay $610 357 10.9% Herne Hill $430 77 10.3% Norlane $330 256 10.0% Point Lonsdale $550 42 10.0% St Leonards $435 149 8.7% Mount Duneed $500 261 8.7% Breakwater $390 23 8.3% Newcomb $390 128 8.3% Barwon Heads $650 64 8.3%

Source: PropTrack

UNITS: TOP 20 GEELONG SUBURBS

Suburb Median weekly asking rent Number leased (12 months) 12 month % growth Point Lonsdale $595 16 58.7% North Geelong $340 14 23.6% South Geelong $390 11 21.9% St Albans Park $350 14 16.7% Waurn Ponds $400 13 15.9% Herne Hill $290 90 14.9% Portarlington $400 27 14.3% Hamlyn Heights $400 77 14.3% Newtown $395 169 12.9% Drysdale $388 18 12.3% Leopold $390 21 11.4% Thomson $368 14 11.4% Marshall $400 15 11.1% East Geelong $380 33 10.1% Belmont $385 205 10.0% Newcomb $350 68 9.4% Highton $370 173 8.8% Bannockburn $370 11 8.8% Bell Park $380 71 8.6% Grovedale $380 76 8.6%

Source: PropTrack

Originally published as Pressure drops for renters amid signs Geelong market is easing