First published 31 Oct 2026, 5:00am
More than half of residents in central Geelong are renters, census data shows.
A national buyer’s agent and property investor warns renters to brace for more hip-pocket pain as rent rises outpace the rate of inflation in most Geelong suburbs, new data shows.
New PropTrack data reveals the suburbs and towns where median advertised rents are rising faster than the 4 per cent annual rate of inflation recorded for Melbourne in the year to September, according to CPI data released on Wednesday.
The PropTrack data reveals that increases in median rent was higher than 4 per cent in 38 suburbs and towns across the region, and 18 locations for units.
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The research captures the median price data for houses and units advertised for rent, but doesn’t catch when landlords raise prices for existing tenants.
While the areas with the biggest rises were coastal communities such as Indented Head, Barwon Heads and Portarlington, year-on-year increases of more than 10 per cent were recorded in Geelong suburbs where at least 30 per cent of residents rent.
This includes for houses in South Geelong and Herne Hill and units in Thomson, Corio, Manifold Heights and central Geelong.
Other suburbs with a higher proportion of renters with above-inflation rent increases included Armstrong Creek, Bell Park, Belmont, Corio, Curlewis, Geelong West, Newcomb, Norlane, North Geelong and Whittington.
The three-bedroom house at 329 Charlemont Rd, Armstrong Creek, is listed for rent for $590 a week.
Alarming ABS figures released Wednesday showed headline inflation (CPI) was 4.3 per cent, up from 4 per cent over the 12 months to August, while underlying inflation remained well above the 2-3 per cent RBA target band, suggesting a strong case for more interest rate hikes.
Geelong-based Charlie Property director Charles Corby warned if the central bank does raise rates for a fifth time this year, renters should brace themselves when their lease comes up for renewal.
“Yes, investors are passing it on. And I think it’s about to get worse,” Mr Corby said.
“Most investors I talk to copped the first three rate hikes this year on the chin. Those just undid last year’s cuts, so people wore it.
Charles Corby is a professional renovator, investor director of buyers agency Charlie Property
“The fourth one is where I started hearing a different story. And now with inflation coming in hotter than expected, a fifth hike on Melbourne Cup Day looks pretty likely.
“That’s the one that tips people over.”
Mr Corby said he doesn’t think it’s greed.
“Every hike hits them twice. Once on the loan for the house they live in, and again on the investment loan,” he said.
“These are mostly mum and dad investors on a wage. They can’t just go out and earn more to cover the gap. You can only absorb so much, and then it has to go somewhere. And the only place left for it to go is rent.”
“Right when people are trying to put a bit away for Christmas, they could get handed a rent increase that eats the lot,” he said.
The three-bedroom house at 70 Bellarine Highway, Newcomb, is listed to rent for $550 a week.
Markets are currently pricing in a roughly 62 per cent chance of a rate hike on Melbourne Cup day next week. Another 0.25 per cent hike would take the cash rate to 4.85 per cent, the highest in 18 years.
Realestate.com.au senior economist Angus Moore said rising rents would be very challenging as renters faced record low rental affordability and worsening cost of living pressure.
He said rental vacancy rates remained tight, though not as bad as 2022.
“The fact that it’s faster than inflation is evidence of that market tightness,” he said.
“We’d expect over the long run for rents to grow more in line with inflation or incomes.”
But rising rent would improve cash returns for investors, particularly as home prices fall, Mr Moore said.
Source: PropTrack Median advertised weekly rent.
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