However, as is so often the case, a lot of the numbers that are being quoted are entirely irrelevant for landlords with a rental property in the northern suburbs of Melbourne. Here’s why.
One of the sources being quoted this week is the monthly rental market report from SQM Research, as their latest figures indicate that there has been a big increase in rental vacancy rates in many of Melbourne’s most popular rental markets.
The fact is that rental vacancy rate have increased in many areas of Melbourne, as a result of employment losses, the inability of international students to travel to Australia, and the increased supply of apartments that are now being offered for long term lease due to the collapse of the short term accommodation market through websites like Airbnb.
But the important thing to remember here is that there are some areas of Melbourne where the drop in international students and short-term accommodation has a HUGE impact, and other areas where they have next to no impact. Our area of Melbourne is one of the latter.
For example, data from SQM Research suggests that the April 2020 vacancy rate in Melbourne’s CBD was 7.6 percent, up from 5.0 percent in March and just 2.3 percent in April 2019. But this is purely the CBD area, where international students and short-term stays are so common. Indeed, SQM have suggested that the vacancy rate may be as high as 13% in areas like Southbank.
So, whilst rises in vacancy rates have been recorded in many areas of the nation, stable suburban markets like ours have performed far more favourably. This is particularly the case when you have experienced professional property managers looking after your rental property, such as the highly respected PROPERTY MANAGEMENT TEAM AT BARRY PLANT THOMASTOWN.
The key tip I can provide for any landlord, whether you want to make sure you are getting the best possible performance from your existing rental property, or you are considering taking advantage of the current market conditions to purchase a rental property at a discount, is to talk to a dedicated property professional who knows the local market before you make any final decision.
The team at Barry Plant Thomastown is always happy to advise and assist you at any time, so don’t hesitate to give us a call on 9466 3233.
Barry Plant Thomastown