Rents on the rise in regional Victoria

It has been a good year for property investors with rental growth recorded across regional Victoria in the 12 months to the end of September.

New REIV data shows the largest rental increase were for two-bedroom homes, up 3.9 per cent over the year to a weekly median rental of $250. Rental growth was also seen for one-bedroom units, up 3.2 per cent to $165 per week, and four-bedroom homes, up 2.9 per cent to $360.

The top regional rental growth areas, with a minimum of 50 leases in the three months to September 30, were Sale, Geelong West and Torquay.

Sale was one of the state’s strongest performers with solid growth recorded for two-bedroom units as well as three and four-bedroom houses. Rents for two-bedroom units in the regional centre rose 13.6 per cent over the year to a median weekly rental of $250. Three-bedroom houses also increased, up 7.4 per cent to a weekly median of $290, while rent for four-bedroom homes grew 8.3 per cent to $390 per week. 

Three-bedroom houses were also highly sought after by tenants in Geelong West with the weekly median rental of $370, up from $333 – an annual increase of 11.3 per cent. 

The coastal town of Torquay also experienced rental growth for larger homes with four-bedroom homes up 7.3 on the same period last year to $495 per week while three-bedroom houses there rose 7 per cent to $420. 
Solid rental increases were also seen in Mildura and Wodonga. The median rent for a four-bedroom house in Mildura increased 6.3 per cent over the year to $340 while three-bedroom homes in Wodonga attracted a weekly median rental of $308, up six per cent on the same period last year.

Other regional centres also recording significant rental growth, but with less than 50 leases in the September quarter, include Jan Juc where rent for a three-bedroom was up 18.8 per cent over the year to a median of $440 per week.
 
Rental growth was also seen for three-bedroom homes in the Greater Geelong area. Hamlyn Heights experienced a 13.1 per cent annual increase to a weekly median rent of $345 while rents in Clifton Springs were up 5 per cent to $315.

Shepparton and Mildura had the highest volume of leases in the three months to September 30, both with 196 three-bedroom homes rented. The weekly median rental for this property type was $283 in Shepparton and $280 in Mildura.

Other regional towns with high lease numbers for three-bedroom homes were Sale (128), Traralgon (125), Corio (105) and Ocean Grove (100).