Dec-Jan Rental Market Update

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

Do you have an investment property?

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Step 1:

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Step 3:

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

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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

San Remo

Northern Victoria

Eastern Victoria

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Far North Queensland

Wonthaggi

Bairnsdale Drouin Warragul Cairns & Beaches

The quality of our service stems from the importance we place on the people behind our network. obre.com.au