Geelong rental relief coming

Geelong’s rental market is showing signs of easing from record supply pressures during last year.

Proptrack’s latest rental report shows prices plateaued and stock increased in the final quarter 2022 as conditions shifted slightly in favour of tenants.

The December 2022 Quarter Rental Report collates data from listings on realestate.com to analyse trends.

Proptrack economic research director and report author Cameron Kusher said December showed more properties were available to rent, improved vacancy rates and longer time on market compared with the same time last year.

“Rental growth in Geelong stalled over the final quarter with no change in rents and over the year rents increased by 4.7 per cent, which represented a slowing from growth in 2021.

“Rental supply challenges appear to be easing with new listings 20.4 per cent higher year-on-year and total rental listings up 18.4 per cent year-on-year.

“Vacancy rates have also increased slightly to 1.5 per cent and days on site has lengthened from 18 days in December 2021 to 21 days in December 2022.

“It’s also clear that there’s been a drop in demand for rental with enquiry per rental listing down 36.4 per cent year-on-year.”

The 1.5 per cent vacancy rate is an improvement on figures during 2022 – when the figure plunged to record-lows of 1 per cent – but still below the generally accepted balance-point of about 3 per cent.

Mr Kusher anticipated the market would continue stabilising into 2023.

“With life returning to normal and the cost of renting in Geelong now on par with greater Melbourne, I think we will see a further easing of rental pressures throughout the region over the coming quarters,” he said.

“In in fact if supply continues to increase, we may see lower rents by the end of this year.”

On the national scale, Mr Kusher predicted the tight market trends to continue for the foreseeable future.

“While the market remains challenging for renters, few renters are moving into home ownership nor are there signs of investors returning to the market,” he said.

“With a low volume of stock available for rent at a time in which demand for rentals remains strong and may increase further, we expect the market to remain challenging for renters seeking to lease a property.”