Geelong’s rental hot spots as investors reveal long-term strategy

0

- Advertisement -

Potential tenants are queuing up for rental properties across Geelong. (AAP Image / Angelo Velardo)

PROPERTY investors are looking at Geelong with a long-term view for capital growth while pocketing immediate returns as new data reveals the city’s rental hot spots.

Belmont and Highton are the most in-demand suburbs for rental homes in the past six months, according to Realestate.com.au.

More than 330 Belmont rental properties attracted 417,516 views — averaging 1243 per property, while 325 properties in Highton had 342,856 views — an average of 1055.

MORE REAL ESTATE:
Crowds queue up in chase for Geelong rental properties

Geelong weekend auction pickings ready for renovation rescue

New carbon neutral rental homes in Hamlyn Heights to ‘cut costs’ for renters

Gartland Property, Geelong agent Nathan Ashton. Picture: Peter Ristevski

Property insiders said keen investors were capitalising on strong demand as local property managers told the Advertiser they faced queues of up to 30 hopeful tenants for a single rental property. Readers reported witnessing more than 50.

Gartland Property, Geelong agent Nathan Ashton said this year could be the year of the investor.

“A lot of investors were looking for really solid growth and a good return in the immediate future, whereas now they are looking at purchasing with a longer term vision,” Mr Ashton said.

“They are not going to get the immediate growth as it has already occurred but they are going to get a good yield today and in five to 10 years time we will see a bit more of the capital appreciation.”

MOST IN-DEMAND RENTAL SUBURBS

Suburb
Properties
Average views per property
Demand

Belmont
336
1243
417,516

Highton
325
1055
342,856

Geelong West
262
1076
281,950

Geelong
246
1081
265,824

Torquay
291
680
197,899

Corio
241
814
196,207

Ocean Grove
234
808
189,051

Grovedale
171
1073
183,494

Newtown
194
924
179,283

Armstrong Creek
213
732
155,838

Source: Realestate.com.au for six months to February 28.

He said the investors buying now had the capacity to make swift purchases.

“They are not going to haggle on price as they know the rental yields are supportive of the price they are paying,” he said.

Mr Ashton said any rental yield above 4 per cent was pretty good but anything over 4.5 per cent was really good.

Hayeswinckle, Highton agent Michelle Winckle. Picture: Glenn Ferguson

The top five rental returns in Geelong are unit markets in Lara, Norlane, Leopold, Bell Park and Manifold Heights, according to CoreLogic data that shows yields ranged from 4.7 per cent to 5.2 per cent.

The best returns for houses were in Marshall, Wandana Heights, St Albans Park, Breakwater and Whittington, while yields ranged from 4.3 per cent to 4.5 per cent.

Mr Ashton said he sold a lot of new townhouses and units to investors as they offered exceptional tax benefits along with really good rental yields.

Hayeswinckle, Highton agent Michelle Winckle said units were quite popular with investors as they were low maintenance.

“Geelong is always a good solid investor market and investors like Geelong as it is close to the coast and it has great amenities,” she said.

Ms Winckle said she found investors typically focused on suburbs along the ring road corridor.

Buyers agent Karen Avallone secures a property for a client last year. Picture: Mike Dugdale

Ms Avallone also secured a Belmont property in Iona Ave for an investor client and it is now for rent for $425 per week.

Buyers agent Karen Avallone said investors were in Geelong for short and long-term growth with a reasonable yield that was better than Melbourne.

“If we had a client chasing yield where growth wasn’t important, we wouldn’t look in Geelong,” Ms Avallone said.

“We see Geelong as having good medium and long-term prospects for growth.”

Ms Avallone recently bought a house in Iona Ave, Belmont for an investor for close to the asking price of $525,000. It’s now up for rent for $425 a week.

“Yields are definitely jumping and vacancy rates are extraordinary,” she said.

Geelong’s rental vacancy rate is 1.7 per cent, according to REIV.

[email protected]

HOW GEELONG’S TOP RENTAL SUBURBS RATE

Suburb
Property type
Median price
12 month change
Median asking rent
Gross rental yield

Lara

Unit
$329,500
3.9%
$330
5.2%

Norlane
Unit
$290,000
8.2%
$280
5%

Leopold
Unit
$355,000
17.8%
$330
4.8%

Bell Park
Unit
$375,000
8.7%
$340
4.7%

Manifold Heights
Unit
$331,000
4.4%
$300
4.7%

Grovedale
Unit
$357,000
8.2%
$320
4.7%

Herne Hill
Unit
$257,000
-1%
$230
4.6%

Corio
Unit
$265,000
5%
$235
4.6%

Marshall
House
$466,000
9%
$400
4.5%

Whittington
Unit
$315,500
42.4%
$270
4.5%

Wandana Heights
House
$685,000
6.2%
$580
4.4%

St Albans Park
House
$438,000
17.2%
$370
4.4%

Breakwater
House
$382,500
14.2%
$320
4.4%

Geelong West
Unit
$360,000
0
$300
4.3%

Newtown
Unit
$396,250
-4.5%
$330
4.3%

Belmont
Unit
$385,000
10%
$320
4.3%

Whittington
House
$386,000
22.5%
$320
4.3%

Newcomb
Unit
$355,500
19.3%
$290
4.2%

Bell Park
House
$436,000
11.2%
$350
4.2%

Grovedale
House
$488,000
13%
$390
4.2%

Source: CoreLogic

Leave A Reply

Your email address will not be published.