Some growth-corridor landlords are reducing asking rents
Advertised rents on some homes in Geelong’s growth corridors have fallen by as much as $50 a week as landlords seek tenants, according to property journalist Peter Farago’s report published on 7 November 2026. The report identifies Armstrong Creek, Mount Duneed, Charlemont and Lara as suburbs where new rental supply is exceeding demand.
The reported $50 reduction is an upper example, not a uniform fall across those suburbs or the wider Geelong market. An advertised rent is the asking price; it does not establish the rent ultimately agreed for every property.
Jellis Craig Geelong director Renee Reynolds told the publication that some properties were being offered for $50 a week less than they had been leased for 12 to 18 months earlier. She described the growth-corridor market as sensitive to price, with more properties available than people looking.
New listings and city-wide rental data measure different things
The report linked the growth-corridor oversupply to interstate investors buying new homes that then entered the rental market. Its listing snapshot counted 172 advertised homes across Armstrong Creek, Charlemont and Mount Duneed, and a further 91 in Lara. Those figures describe a snapshot of advertised listings, not the number of vacant homes or completed leases.
The picture across the City of Greater Geelong was different. Farago reported that the Victorian Government’s June quarter Rental Report showed rents rising overall, alongside a fall in new lettings. The report was cited as recording 27,638 active rental bonds, growth of 1.8% in the rental pool compared with a 2% average over the previous decade, and a 5.6% annual fall in new lettings in the three months to June.
Homes Victoria’s Rental Report – June quarter 2026 explains that its median weekly rent is based on new lettings during the quarter, while rental bond data is used as a proxy for the number of private rental dwellings. That makes the report useful context, but it does not turn a city-wide measure into a rent estimate for an individual home.
The exact publication date of the June quarter report is not established in the available material. The Department of Families, Fairness and Housing’s Rental Report page, which presents its figures, was updated on 29 October 2026.
A lower asking rent changes the cash-flow scenario
The change in take-home cash flow will depend on the rent agreed, the periods for which the property is rented and the owner’s expenses.
For a practical comparison, put the existing and lower-rent scenarios side by side:
- Start with the rent previously assumed for the property.
- Enter a lower weekly rent that reflects the scenario being tested.
- Allow for a period without rent.
- Subtract loan repayments and property expenses.
- Compare the remaining cash flow with the amount available from other income.
These are scenarios, not forecasts. Test more than one rent and vacancy assumption if the property’s eventual lease terms are uncertain.
Lenders may count less than the full rental income
Rental income can form part of a lender’s assessment of whether a borrower can afford an investment loan.
The supplied material does not establish a current standard percentage that all lenders apply. A borrower can therefore compare scenarios using the rental income a particular lender is prepared to assess, alongside the interest rate and repayment assumptions it uses. A fall in assessed rental income may reduce the amount a borrower can qualify for, but the change cannot be calculated from the rent reduction alone.
Loan-to-value ratio is a separate measure: it compares the loan amount with the property value used in the calculation. A lower rent alone does not change either figure. A valuation or loan balance change would alter the ratio.
Allow for upcoming property costs
Rental income is only one part of an investor’s budget. Consumer Affairs Victoria says new minimum energy efficiency standards for residential rentals begin in phases from 1 March 2027, with different triggers and exemptions for individual standards.
From that date, the requirements include:
- Heating: an existing fixed system that fails and cannot be repaired must be replaced with an energy-efficient fixed electric system with an outlet in the main living area.
- Cooling: an energy-efficient fixed cooling system with an outlet in the main living area is required at the start of a new rental agreement.
- Hot water: a system that permanently fails and cannot be repaired must be replaced with an energy-efficient electric system.
- Showerheads: water-efficient showerheads with a minimum four-star WELS rating are required in all showers at the start of a new agreement or when an existing agreement becomes month-to-month.
- Ceiling insulation: a qualified installer must add insulation in ceiling spaces or parts of spaces without it, at the start of a new agreement or when an existing agreement becomes month-to-month.
Consumer Affairs Victoria says exemptions may apply where compliance is not possible and that every upgrade under the new standards is eligible for a Victorian Energy Upgrades discount. The material does not provide a reliable upgrade cost for an individual older or newly built home. Budgeting therefore depends on the property’s existing equipment, applicable trigger, any exemption and the cost of the required work.
Questions investors may have
Has every Geelong landlord lost $50 a week?
No. The reported figure is a reduction of up to $50 a week on some homes, concentrated in the named growth-corridor suburbs. It should not be applied automatically to every property.
How does a lower asking rent affect rental income?
The actual difference depends on the rent agreed and how long the property is leased.
How much will that reduce borrowing capacity?
There is no single answer in the available evidence. Lenders assess income and expenses, and the RBA has described the use of reductions to rental income in serviceability assessments. The effect depends on the lender’s current method and the borrower’s circumstances.
Should an existing investor consider refinancing?
Compare the revised rental cash flow with the current loan repayments and other property expenses first. A refinancing scenario can then be assessed against the existing arrangement, including its costs and terms. If the investor is considering additional borrowing, a separate investment-loan scenario can show how the revised income assumption affects that decision.
What rental evidence is useful for a specific property?
Compare asking rents for similar homes in the same suburb, including their size, condition and time advertised. Treat asking prices and completed lettings as different measures. The June quarter Rental Report uses new lettings for its median rent measure, but the supplied material does not establish a current suburb-level vacancy figure for each of the four named suburbs.
Source context
The local market account and Geelong figures are drawn from Peter Farago’s property report, first published on 7 November 2026, which cites local agents and the June quarter Rental Report. The Department of Families, Fairness and Housing’s Rental Report page identifies the June quarter 2026 report and was updated on 29 October 2026. The standards summary draws on Consumer Affairs Victoria’s New minimum energy efficiency standards guidance; its publication date is not provided in the available material.