Rental prices along Victoria’s coast and in lifestyle-driven regional areas continue to climb, driven by strong demand from seachange and treechange movers. Recent data from the December Domain Rent Report shows sharp increases across several shires popular for coastal and regional living.
The Colac Otway Shire, stretching from the Surf Coast inland, recorded an 11 per cent rise in rents over the past year, reaching a median of around $500 per week. In the Moyne Shire, including Port Fairy, median weekly rents rose about 10 per cent to roughly $495, while the Surf Coast saw an almost 8 per cent increase to about $700. Other coastal and regional areas, including Warrnambool, the Bellarine Peninsula, the Bass Coast and Glenelg, also reported higher asking rents.
Across regional Victoria as a whole, house rents increased more than four per cent over the year, outpacing growth in Melbourne, where house rents have eased slightly.
Low vacancy rates in these coastal and lifestyle towns, combined with ongoing population growth and strong local job markets, are keeping rental demand high. This has created a tighter rental market and upward pressure on prices — a trend that could present opportunities for property investors seeking stable rental returns.
For those already in the property market, leveraging equity in an existing home or exploring investment loans may allow buyers to tap into these high-demand regions. Local experts note that while development is slow in some areas due to planning and regulatory factors, strategic investment in established regional towns could position owners to benefit from continued rental growth.
With lifestyle appeal, population movement, and a tight rental supply driving rents higher, investors and homeowners considering their next property move may find the current market particularly appealing.
Need expert advice? Contact UFinancial today.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced, or republished without prior written consent. Content developed in partnership with IFPA.
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