Rental market data is good news for investors
One of the topics that we are being asked about quite regularly of late is whether there are more people looking to buy property as an investment for the rental market, as opposed to the number of buyers looking to purchase a home to live in themselves.
Anyone who follows these WEEKLY MARKET UPDATES on a regular basis will probably already be aware of the increased activity from investors in recent months, as it’s a trend we’ve been reporting for a while. However, some readers may be wondering what is behind this growing activity.
We did some research this week to see what up-to-date information was available, and here’s what we found in a recent report from Cotality, (or as we used to know them, Corelogic).
Firstly, the supply of rental stock around the nation is low. In fact, the current number of available rental listings has been measured at close to 25% below the five-year average for this time of year. The national vacancy rate has now fallen below 1.5 per cent, which is less than half the pre-COVID average of 3.3 per cent.
Secondly, median residential rents rose by 1.4 per cent nationally in the third quarter. This was the strongest quarterly increase since the middle of 2024, and came hot on the heels of a 1.1 per cent rise in the second quarter this year, meaning there has been a 4.3 per cent increase in rents over the 12 months to September.
So when you have rising rents in response to reduced supply, in a market where confidence about the national economy, interest rates and the overall property market are all in positive territory, it’s not hard to see why so many Australian are taking a stronger interest in securing their financial future by becoming a property investor.
Indeed, our recent sale of a two-bedroom apartment in the iconic Paterson’s Building in Smith Street, Fitzroy (pictured) was a prime example, with multiple enquiries from prospective investors being received in the short period this property was available for sale.
Make no mistake, if you are currently in the market for a property with rental potential, or competing against these buyers to secure a roof over your own head, the key to success often lies in having the right strategy built on getting the right advice from ‘Day One’.
So if you are keen to gain an edge in today’s competitive market, feel free to have a chat with our experienced team at Barry Plant Thomastown this week. You’ll get us on 9466 3233.
Cheers,
Con Constantinou
Barry Plant Thomastown