By Luke Voogt
Geelong rents have fallen amid the COVID-19 pandemic, according to the Real Estate Institute of Victoria (REIV).
Median house rental prices shrunk by $10 to $400 per week in Geelong from February to March.
REIV president Gil King said the figures, released this week, reflected the resilience of the market in the lead up to the State of Emergency.
“The temporary measures in place due to COVID-19 make it challenging to gauge the real situation but the underlying strength of the Victorian property market is undeniable.”
Both Melbourne and regional Victoria had recorded similar drops from February to March.
As prices fell in regional Victoria, vacancy rates increased from 1.8 to 1.9 per cent, according to REIV.
“Victoria’s rental accommodation supply is growing, more and rental homes are now available, but there remains a huge need for more properties to be listed to cater for growing demand,” Mr King said.
“Victoria needs vacancy rates of three to four per cent to maintain a healthy market.
“Lower vacancy rates mean that families are finding it tougher and tougher to put a roof over their heads.
“I urge owners of investment homes to lease out their properties; they will get a great rental return and homes are being leased out rapidly, with no hassle.”
But Geelong house prices increased in the quarter to March 2020, up 1.8 per cent on the previous quarter and 2.7 per cent on last year.
Median house prices during the quarter rose to $580,000, up on $570,000 the previous quarter.
Curlewis recorded the highest annual increase of 16.3 per cent, while St Leonards recorded a fall of 12.5 per cent.
Of the localities that sold 50 or more houses for the 12 months to March 2020, Corio recorded the largest decrease (9.9 per cent) and Clifton Springs had the highest increase (6.2 per cent).
Last week Mr King lauded Victoria’s “record-breaking growth” in the quarter to March prior to the coronavirus outbreak.
“Our local market is strong and resilient; buyers from across the globe have shown great interest in Victoria,” he said.
“In chaotic times such as we are battling now, it is a much welcome relief to be able to see some good news, Victorian real estate is in great condition.”
