CEO Rental Market Wrap
There’s a severe shortage of rental properties on the east and south east coast of Australia. A series of natural disasters have impacted the availability of rental properties in New South Wales and Queensland.
In Victoria, we also suffer a lack of available rentals - but for different reasons. Yes, like other states, we have lost long-term rentals to the short-term AirBNB market - particularly in tourist areas - but the other reason we have seen a reduction in rental properties is the introduction, over 12 months ago, of significant rental reforms by the Victorian Government. As part of their reforms, they increased the minimum standards that dwellings needed to meet in order to be offered for lease in Victoria. As the property market rose, many residential rental providers chose to cash in on the premium prices and sell rather than upgrading their properties and that left a significant gap in available rental stock.
Both competition for the number of properties available and the improvements carried out to dwellings have seen a rise in weekly rents over the last 12 months and these increased returns are working to encourage investors back into the market again. In fact in the quarter ending 30th June, rents were up 9.1% in the capital cities and 10.8% in regional areas - believed to be the highest annual growth in rental values since December 2008. The growth back then was on the back of significant migrant intake and with the opening of our national borders, migrants will once again head here, leading to an even tighter rental market and, with the law of supply and demand, a further increase in rents is expected to follow.
With interest rates increasing, it’s important to look at every aspect of your property’s management to ensure that you get the best possible yield from your investment. In our latest Investor Advantage report you’ll find a list of ten things you can do to increase your yield.
Probably the most important thing you can do as an investor (and we didn’t include this in the list) is ensure that your property is in the hands of a highly trained expert who can help you increase your yield, navigate any legislative issues and protect you from the potential pitfalls in property investment.
If you’re looking for an expert property manager who is passionate about the correct management of investment properties, contact your local Barry Plant office.