Figures say tight rental market ahead
We had a few calls from property owners this week who had seen some media coverage of the latest vacancy rates for rental properties; and were wondering what the future held for the rental market in our part of Melbourne.
Firstly, it’s important to understand that whilst the number of available rentals across the country rose slightly in December, this is something that occurs at this time of year every year. December is one of those months when a large number of renters like to changeover their accommodation, particularly those who have a lease that is work-related. Quite a lot of renters tend to have a “new year, new home” approach, as the holiday period is an optimal time to move house, so no surprises there.
What is more relevant for owners of rental properties is that the national vacancy rate in December of 1.7 per cent was down almost one third from 2.4 per cent at the same time last year. So the rental market is actually tighter, and is likely to tighten further as January is typically a period of strong demand.
When you consider that a vacancy rate of 3 per cent has always been viewed as a “balanced market”, there is no doubt that the current rental market is favouring property owners rather than renters at the moment.
Before too many local renters feel too hard done by, however, just be grateful you’re not trying to find a rental property in some other parts of Australia. The vacancy rate in Hobart in December was just 0.3 per cent, Adelaide had 0.4 percent and Perth had 0.6 per cent!
Even in the areas that were most heavily impacted by the lockdown restrictions, like the apartment market in Melbourne’s CBD, the vacancy rate has fallen from 14 per cent to just 4.5 per cent.
Figures like these suggest that the rental market in our part of town is likely to remain tight for the foreseeable future, creating an opportunity for local investors who may wish to add to their portfolio as well as first-time investors who may wish to take action in 2022 to secure their financial future.
No matter what your current situation is, if you have any questions about the rental market in our area, or investment opportunities for the future, our team is always happy to assist you. Feel free to give us a call this week at Barry Plant Gladstone Park on 9330 1088.
Cheers,
Nick Pugliese - Sales Director
and Bill Karp - Director
Barry Plant Real Estate
Gladstone Park