Rental Market Update December 2023 - January 2024 Review
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January report
From our corporate director Dean O’Brien
Hi All, In the latest update on Australia's housing market, CoreLogic reports a modest increase in national home prices by 0.4% for January. However, Melbourne diverged from this trend, experiencing a slight decline of 0.1% in home prices, marking the second consecutive month of depreciation in the city's housing values. The economic landscape received a notable update with the release of December quarter inflation figures, which registered at a two-year low of 4.1%. This development, announced last Wednesday, provides the Reserve Bank of Australia (RBA) with the flexibility to maintain interest rates at their current level for the immediate future, sparking discussions on the timing of potential rate cuts in 2024. The Commonwealth Bank of Australia (CBA), the country's largest lending institution, is projecting a series of interest rate reductions over the next two years. Specifically, CBA anticipates three rate cuts in 2024, followed by an additional three in 2025. This would result in a decrease in the RBA's cash rate to 3.6% from the current 4.35%, representing a reduction of three-quarters of a percent. Concurrently, CBA forecasts a 5% increase in national dwelling prices in 2024. Focusing on Melbourne's housing market, the city experienced its busiest auction weekend of the year on February 3, with 608 homes going under the hammer and achieving a clearance rate of 71.9%. The OBrien real estate network alone auctioned 34 homes, achieving a clearance rate of 73.5%. However, Melbourne's performance was not without its challenges. It ranked as the secondworst performing capital city in January, trailing behind Hobart. Despite this, the collective performance of capital cities was positive in January, with an average increase of nearly $2000 in home prices. .
This period also saw significant activity in both the US and Australian stock markets, with investors breaking all-time records. In contrast, Regional Victoria's home prices remained stagnant, with neither increases nor decreases reported. This could be attributed to investor caution, possibly influenced by the introduction of a 10-year Covid Land Tax levy in Victoria from January 1 this year. The rental market has also seen significant developments, with vacancy rates dropping to alltime lows of just under 1%. This tightening of housing supply is expected to persist, as evidenced by a sharp 18.4% decrease in Victoria's dwelling approvals in December, a figure that significantly surpasses the national decline of 9.5%, according to the Australian Bureau of Statistics. It's crucial for to stay informed and consider seeking independent legal, financial, taxation, or other forms of advice to align with their unique investment goals and circumstances.
Regards, Dean O'Brien Corporate Director
Victoria at heart of housing shortage as nation’s home building woes expected to persist for several years
“Compounded by record levels of migration, Australia’s housing undersupply is expected to persist for several years.” However, Victoria might be better positioned than many other states to reach higher new home construction levels in the coming years, as its capital city had the nation’s highest supply of land for development and also offered more affordable land than was available around Sydney. Urban Development Institute of Australia Victorian chief executive Linda Allison said with interest rates high, pressure on construction costs and the availability of trades people challenged, low numbers of homes being approved in December weren’t surprising.
Australia’s housing shortage is expected to “persist for several years” after the nation’s new home market recorded its softest annual approvals in more than a decade in 2023. Authorities signed off on just 162,194 homes around the country, a 29,525 (15.4 per cent) reduction from 2022 and far below record levels in 2021. And a struggling Victoria is leading the figures down, with the 3559 new builds given the green light in December at their lowest level for the month since 2011. Australian Bureau of Statistic figures show just 3559 homes were green lit for construction across the state in the final month of the year, with the only softer month in 2023 being January when authorities ticked off just 2895 new builds. Often one of the year’s busier months, there were more than 5000 homes approved in both of the prior two Decembers. More than 6000 were given the nod for construction in December 2016 and 2019. The last time December approvals were below 3500 was in 2011. Oxford Economics Australia senior economist Maree Kilroy said Victoria’s decline, along with that of NSW’s, was doing a lot of the “heavy lifting” for the nation’s tumbling construction numbers. Ms Kilroy said there was a pipeline of work not yet done around the country that would provide a short-term boost to housing supply over the next six months, but that it would be short lived. “The trajectory of dwelling approvals points firmly to a softer 2025 for completions,” Ms Kilroy said.
“I think it’s a fairly expected result when you consider the various pressures on the housing and construction market at the moment,” Ms Allison said. “We would be cautiously optimistic that we will see these figures improve as the year progresses. But it will take some time for that to happen.” article source : www.realestate.com.au
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Step 1:
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Assessment Simply call and speak to our experienced Growth Specialist who will review and assess, collecting some information to commence the hand over process.
Authorise At this stage, we will gather all required documentation authorising our team to take over the file and begin an in depth analysis of your property.
OBrien Real Estate hand over We take it from here, managing contacts, assessments, and file transfers. We'll also liaise with your tenant for inspections or introductions.
Josh Barbut 0439 782 898 Property Management Growth Specialist
Rental review 16
62
Rental providers/ property owners have chosen us
Properties leased
$541
17
Average median rent per week
Average days on market
5,488
1,994
Renter enquiries
Renter applications received
82,764
4,494
Property views
360 degree tour viewed
124
0.41%
Leasing inspections conducted
Vacancy rate
We lease more. A snapshot of last months leases. Price
Price
per week
per month
2
$630
$2,737
2
1
$560
$2,433
2
1
1
$430
$1,868
Beaconsfield
3
1
1
$450
$1,955
37 Lemongrove Way
Berwick
4
2
2
$650
$2,824
8 Sing Crescent
Berwick
3
2
2
$550
$2,389
1 Konac Court
Berwick
3
2
2
$560
$2,433
46 Allunga Parade
Berwick
3
2
2
$550
$2,389
21 Melzak Way
Berwick
3
2
1
$450
$1,955
2 Tilba Court
Berwick
3
2
2
$500
$2,172
36 St Boswells Avenue
Berwick
4
2
4
$590
$2,563
6 Turella Close
Berwick
4
2
1
$570
$2,476
2 Van Der Haar Avenue
Berwick
3
1
2
$450
$1,955
15 Llano Circuit
Berwick
3
2
2
$520
$2,259
16 Juliet Way
Berwick
3
2
1
$510
$2,216
27A Sharpe Court
Berwick
3
1
1
$450
$1,955
9 Orsino Place
Berwick
4
2
2
$600
$2,607
1a Watson Garden
Berwick
3
2
2
$530
$2,302
9 Colson Way
Berwick
4
2
2
$570
$2,476
34 Scanlan Street
Berwick
3
2
6
$700
$3,041
14 Dixon Grove
Blackburn
3
1
1
$500
$2,172
3/37 Chandler Road
Boronia
2
1
1
$450
$1,955
20 Rothan Avenue
Boronia
3
2
3
$625
$2,715
35 Robertson Crescent
Boronia
3
1
1
$390
$1,694
Unit 105/8 Bambury Street
Boronia
1
1
1
$450
$1,955
27 Woodvale Road
Boronia
4
2
2
$600
$2,607
11 Ridgeline Drive
Botanic Ridge
6
2
2
$780
$3,388
Address
Suburb
1/13 Church Street
Bayswater
3
2
4 Fairlawn Place
Bayswater
3
Unit 5/12-14 Elmhurst Road
Bayswater North
2/2 Adamson Road
December 2023 - January 2024 Review
We lease more. A snapshot of last months leases. Price
Price
per week
per month
2
$1,050
$4,561
2
2
$580
$2,520
3
2
1
$480
$2,085
Clyde North
4
2
2
$550
$2,389
39 Springleaf Avenue
Clyde North
3
2
1
$550
$2,389
19 Freiberger Grove
Clyde North
3
2
2
$530
$2,302
8 Rawls Street
Cranbourne
4
2
2
$575
$2,498
22 Virginia Street
Cranbourne
3
1
1
$500
$2,172
9 Evelyne Avenue
Cranbourne
3
2
3
$495
$2,150
5 Mercury Road
Cranbourne East
4
2
2
$550
$2,389
9/278 Narre Warren - Cranbourne Road Cranbourne East
2
1
1
$420
$1,825
10 Fairlane Court
Cranbourne East
3
2
2
$520
$2,259
22 Gatehouse Parade
Cranbourne East
3
2
2
$520
$2,259
Unit 14/10-20 Mickleham
Cranbourne North
3
1
2
$460
$1,998
9 Hunter Court
Cranbourne North
3
1
1
$515
$2,237
1/56 Elizabeth Street
Cranbourne North
3
2
1
$440
$1,911
18 Tilden Rise
Cranbourne North
4
2
2
$550
$2,389
14 Coberley Way
Cranbourne North
3
2
2
$530
$2,302
21 Flanagan Crescent
Cranbourne South
4
2
2
$570
$2,476
51 Raisell Road
Cranbourne West
3
2
2
$510
$2,216
40 Jupiter Crescent
Cranbourne West
3
2
1
$480
$2,085
83 Morningside Boulevard
Cranbourne West
3
2
2
$600
$2,607
9a Shetland
Endeavour Hills
2
1
1
$420
$1,825
7a Nadia
Endeavour Hills
3
2
1
$460
$1,998
2 Rossiter Avenue
Endeavour Hills
3
1
2
$500
$2,172
Unit 319/16 Clyde Street Mall
Frankston
2
2
1
$390
$1,694
9 Crocus Crescent
Glen Waverley
3
1
2
$550
$2,389
Address
Suburb
11-12 Red Ash Close
Botanic Ridge
4
2
11 Milford Street
Clyde
4
30 Mattamber Street
Clyde
21 Orpington Drive
December 2023 - January 2024 Review
We lease more. A snapshot of last months leases. Price
Price
per week
per month
1
$350
$1,520
2
1
$480
$2,085
3
1
2
$550
$2,389
Langwarrin
3
2
2
$640
$2,780
6 Glenbrook Crescent
Lynbrook
4
2
2
$630
$2,737
34 Henry Lawson Drive
Lynbrook
4
2
2
$650
$2,824
40 Demmie Mews
Lyndhurst
2
1
1
$400
$1,738
11 Mermaid Grove
Lyndhurst
4
2
2
$600
$2,607
25 Kent Road
Narre Warren
5
2
2
$630
$2,737
7/31-45 Vimini Drive
Narre Warren
3
1
2
$490
$2,129
11 Beverly Court
Narre Warren
3
1
2
$495
$2,150
4 Rosaleen Court
Narre Warren
3
2
2
$450
$1,955
38 Kurrajong Road
Narre Warren
3
2
6
$580
$2,520
4 Lighthorse Crescent
Narre Warren South
3
1
1
$460
$1,998
43 Sneddon Drive
Narre Warren South
4
2
1
$550
$2,389
7/363-365 Princes Highway
Noble Park
2
1
1
$470
$2,042
15 Austen Avenue
Officer
4
2
2
$595
$2,585
8 Pinot Way
Pakenham
3
2
2
$450
$1,955
27 Harlesden Circuit
Pakenham
2
1
1
$410
$1,781
11 Stanhope Place
Pakenham
4
2
2
$550
$2,389
26 Newbury Street
Pakenham
3
2
2
$490
$2,129
56 Belmont Crescent
Pakenham
3
2
1
$450
$1,955
4/35 Sunbeam Avenue
Ringwood East
2
2
1
$500
$2,172
Unit 2/101 Bergins Road
Rowville
3
2
2
$580
$2,520
11 Karabil Close
Scoresby
3
2
4
$510
$2,216
1 Ingrid Street
Scoresby
3
1
1
$480
$2,085
41A Bayview
Tooradin
3
1
0
$520
$2,259
17 Rosella Road
Torquay
4
2
2
$700
$3,041
55 Tate Avenue
Wantirna South
3
2
2
$540
$2,346
Address
Suburb
4/5 Windsor Street
Hallam
1
1
13 Tiarne Crescent
Hampton Park
3
8 Sybella Avenue
Koo Wee Rup
10 Murdoch Place
December 2023 - January 2024 Review
5 reasons why OBrien
Reason #1
Reason #2
Access to more renters.
Experience, integrity and knowledge.
Inter-office promotion and selling increasing your property’s exposure. Latest prospective renter database.
Local area specialists, highly skilled and trained property managers across all offices.
Reason #3
Faster leasing time. Our low days on market can translate into marketing savings. Less time on market ensures you receive the best possible price.
Reason #4
Reason #5
Constant improvement.
Specialised marketing.
All property managers receive specialist industry training and have regular meetings.
Professional photography and lease boards, utilising Australia’s premier real estate websites.
Josh Barbut 0439 782 898 Property Management Growth Specialist
Our property management team
Currently for lease
Berwick
Berwick 9707 0556 56-58 High Street, Berwick berwick@obre.com.au
Cranbourne
Cranbourne 5995 0500 Cranbourne Park Shopping Centre FS005/125 S Gippsland Hwy, Cranbourne cranbourne@obre.com.au
Narre Warren
Narre Warren 8794 0500 Suite 3, Ground Floor/58 Victor Crescent, Narre Warren narrewarren@obre.com.au
Rental Market Update
Our network 40 offices and growing
Melton
Sydenham Preston / Reservoir Ringwood Blackburn Vermont Wantirna
Deer Park Corporate
Oakleigh
Brighton
Werribee
Croydon
Tecoma / Belgrave / Olinda
Endeavour Hills Mentone Narre Warren Keysborough
Berwick
Chelsea Carrum Downs
Pake n h am
Cranbourne Langwar r i n Frankston
Mornington Somerville
Torquay
Hastings
Rye
Cowes
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Northern Victoria
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Far North Queensland
Wonthaggi
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The quality of our service stems from the importance we place on the people behind our network. obre.com.au