New affordable housing project tackles rising Geelong rental prices
Nicole Mayne
10 Apr 2021, 11:03am
Geelong real estate agents Renee Reynolds, Tanya Di Loreto and Maureen Reynolds have built a new eight-room rooming house in Hamlyn Heights. Picture: Peter Ristevski
Rent hikes are looming for Geelong tenants amid surging property values and the recent lifting of a statewide ban on price increases.
Geelong agents are reporting huge demand from tenants, with houses frequently leased before they even hit the market.
McDonald & Co director Tanya Di Loreto said the city's low vacancy rate was contributing to a housing crisis as affordable rentals were in short supply.
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Inside the affordable rental option for older tenants who may have been priced out of quality properties. Picture: Peter Ristevski
She said single tenants were among the hardest hit and often couldn't pay the $400-plus a week asking price for a one-bedroom residence.
"A lot of people are very disheartened with what they can get for their money," Ms Di Loreto said.
"It is difficult and the prices are certainly on their way up because properties have become more valuable over the last six months."
The state government's freeze on rent increases and the moratorium on evictions ended last month, paving the way for landlords to raise rents for the first time in 12 months.
This one-bedroom Geelong West property is leasing for $350 per week.
In a bid to increase Geelong's affordable housing stock, Ms Di Loreto has teamed up with Release Property, Geelong West director Renee Reynolds to build two new eight-bedroom rooming houses in Hamlyn Heights.
The first two-storey property has just been completed and soon will be available to lease for about $280 to $320 a week, including electricity and basic furniture.
Each of the eight studio-style rooms has its own bathroom and kitchenette, with private balconies upstairs and outdoor spaces off the downstairs bedsits, plus a number of on-site carparks and easy access to nearby shops and public transport.
Ms Di Loreto said it was aimed at mature age tenants who may otherwise not be able to afford to live in a new property.
"Being in the industry we see first hand the crisis we are experiencing in Geelong especially for affordable housing," she said.
"It's really just trying to create better options for affordable rentals."
This older one-bedroom unit in Geelong West is advertised for $260 per week.
The most recent Victorian Rental Report, released by the state government, revealed just 13.9 per cent of rentals in the City of Greater Geelong were considered affordable in the December 2020 quarter.
And not one single-bedroom considered affordable during that three-month period.
Fellow developer Ms Reynolds said the new rooming house would help fill a gap in the market.
"There are not that many nice one-bedroom apartments and there is a need for small apartments," she said.
"We find a lot of professionals or people working in Geelong are looking for these, there is high demand for them."
Ray White, Geelong is leasing a one-bedroom apartment at 202/146-148 Bellerine Street, Geelong for $380 per week.
Buxton rental department manager Jessica Begg-McColl said properties across the board were attracting 10-15 inquiries within an hour of being listed.
"We are leasing before we are able to conduct a Saturday inspection and that is probably the first time that has happened in the six years I've been here," she said.