/// RENTAL MARKET
Metro Melbourne Rental Market Update
The rental market within Melbourne has no signs of cooling down, despite the weather noticeably cooler. Publicised as the ‘tightest’ rental market within Australia for April 2018, Melbourne’s metro market shows another drop in the vacancy rate statistics. The first quarter of 2018 demonstrated a drop of 0.3% from December 2017 and the second quarter is following suit. January and February 2018 had vacancy rates steady at 1.9%, March displayed 1.8% and April dropped another 0.1% to 1.7% (0.3% lower than April 2017).
“Areas with very low vacancy rates, usually sub-2%, are often called “tight” rental markets. This type of market suggests one where rental competition is high, where rents are more likely to be increased and where landlords can have their pick of tenants. It may also be called a ‘landlord’s market’”, as outlined by www.propertyobserver.com.au.
As the ‘population growth’ leader within Australia, Melbourne’s vacancy rates are being driven by the 110,000 people that relocate to Melbourne each year. Housing 2,115 new residents each week, the secret is out…. Melbourne is the place to be!
So, it’s a Landlord’s market? This may be good news for Investors, however, it doesn’t mean you are immune to the scrutiny of Tenants. The rental statistics in Melbourne are favourable towards Landlords, however, it doesn’t mean you should take your foot off the accelerator when it comes to ensuring your investment performs the best it can. Remember, Tenants call the shots when it comes to dictating the success of your investment. After each Tenancy, it is recommended the property is clean and presentable to maximise Tenant and applicant interest (even if it means you have to put in some elbow grease yourself, after the previous Tenancy has vacated). As a Leasing Agent for over 11 years, the top two factors any Tenant looks for when choosing their next home include cleanliness and presentation – no matter how strong the vacancy rates for the area are!
With all the above hype over vacancy rates, it leaves us asking “Where are Melbourne’s most in demand rental suburbs”? As per source: realestate.com.au, I’ll answer the above question for you. With 1,800+ listing views per property, Fitzroy, Carlton & St Kilda take the lead for house searches. St Kilda East follows closely with 1,700+ views per house listing and Elwood, South Yarra and North Melbourne place next with 1,400- 1,500+ views per property listing. Broken down, this means for each property advertisement online (specifically realestate.com.au), hundreds of people are clicking on the advertisement to seek further information about the property in that particular area.
For units and apartments, Clifton Hill leads the way with 1,800+ views per property listing, Albert park with 1,700+ views per apartment listing and Fiztroy North with 1,400+ views per listing. Hampton East and Caulfield also demonstrated 1,200 – 1,300+ views per listing.
2018 is proving to be a strong year for the rental market and it can be forecasted that the supply and demand throughout metro Melbourne for the balance of the second quarter will remain healthy. For further information on the metro Melbourne rental market, do not hesitate to contact myself at [email protected] for further insights.