The correlation between the low vacancy rate in Geelong and rent increases are just the start of some remarkable statistics. After the huge shift to the regional city centres on the back of Covid, Geelong has experienced a surge in population growth, with an influx of families relocating to the area. This rapid increase in population has created a high demand for housing, resulting in a decrease in vacancy rates.
According to recent data, Geelong’s vacancy rate has plummeted to a record low of 1.04%, indicating a scarcity of available rental properties. This tight market has given landlords the ability to help cover some of the increased hold costs due to the 13 interest rate rises. The basic principles of supply and demand at play, as the high demand and low supply have driven up rental costs.
The population growth in Geelong can be attributed to various factors, but it its simplest form, Geelong and its surrounding regions like the Bellarine Peninsula and the Surf Coast are just fantastic places to live. The city’s robust economic growth has attracted businesses and job opportunities, making it an appealing destination for individuals seeking employment and a higher quality of life. In fact, over the past 12 months alone, Geelong has witnessed a nearly 1.97% increase in population, compared to Melbourne 1.1% growth, reflecting its growing popularity. Furthermore, Geelong’s proximity to Melbourne, coupled with improved transportation infrastructure, has made it an attractive option for commuters. Many individuals who work in Melbourne choose to reside in Geelong due to its lower cost of living and relaxed lifestyle. This commuter trend has further intensified the demand for rental properties in the area.
Additionally, the limited availability of titled land for new housing developments in Geelong has contributed to the low vacancy rate. Coupled with the significant recent increases to build costs over the last 12-24 months, this has limited the growth of the new build investment property market, seeing more investors relying on established homes as a likely avenue for future investment opportunities.
Due to all of the above factors, now more than ever represents a great opportunity to enter the investment property market, or get another foothold in it if you are already there. Demand for rental properties has never been higher, and due to this demand, seeking a great rental price to drive a fantastic return for your investment proeprty has never been more achievable. Ensuring you have a proactive property manager who will do the market research and ensure a rent increase for your property represents a good return in the market is key to getting the most out of your property.
As always if you’re looking to buy, sell, lease, or invest. We’re here to help.