Rental Market Update November - December 2023 Review
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December report
From our corporate director Dean O’Brien
Hi All, The Reserve Bank of Australia's (RBA) rate hike in November last year marked a significant turn in Melbourne's housing market, with CoreLogic's December Home Value Index (HVI) revealing a 0.3% decrease in home prices for the second month in a row. This downturn is attributed to a series of interest rate increases throughout 2023, adding to eight hikes in 2022, collectively reducing the borrowing capacity of buyers to about 60% of what it was in January 2022. Despite these challenges, Melbourne's property market saw a moderate overall growth in 2023. The median price for both houses and units in Melbourne Metro rose by $26,392, an increase of 3.5%. This performance was a significant improvement over 2022, which witnessed an 8.1% decline, although it fell short of the 15.1% surge experienced in 2021. When compared to the stock market, Melbourne's property trends mirror those of the ASX 200. In 2023, the ASX 200 grew by 7.8%, recovering from a 7.2% decline in 2022 and following a 13.6% rise in 2021, as reported by ABC News. However, since March 2020, Melbourne has been the lowest-performing capital city in Australia, a trend likely influenced by the profound impact of Covid-19 on Victoria. Regional Victoria also experienced a downturn in 2023, with a 1.6% drop in average median prices for combined dwellings, amounting to over a $9,000 reduction. On a national scale, home prices across all states and territories saw an 8.1% increase in 2023, recovering from a 4.5% fall in 2022 and building on a 24.5% surge in 2021. The top-performing capital cities in 2023 were Perth (15.2% increase), Brisbane (13.2%), and Sydney (11.1%), which brought Sydney’s median house price to $1,400,000, significantly higher than Melbourne’s $948,041.
These figures suggest that Melbourne, despite recent price suppressions, might offer the best value for buyers and investors in Australia, especially when considering the potential for growth over the next three years. It's important to remember that this information is general in nature, and individuals should seek independent legal, financial, tax, or other professional advice tailored to their specific circumstances. Regards, Dean O'Brien Corporate Director
How much Melbourne home prices could rise in 2024: PropTrack Property Market Outlook Report
Ironically, their chances might be improved by landlords selling off rental homes at an accelerated level this year, as Melbourne has more homes for sale than any other capital in part thanks to their exodus. “There are quite a lot of investors looking to exit Melbourne and Victoria because there are quite a lot of taxes,” he said. From next year, investment property owners will be hit with increased land tax costs as the state government implements a series of levies to try and recoup Covid-era budget losses. Real Estate Buyers Agents Association of Australia Victorian representative Luke Assigal echoed the landlord sell off commentary and said he expected the trend could be even more pronounced as planned new taxes on investment and secondary properties came to fruition in the new year.
Melbourne house prices are tipped to rise up to $37,000 in 2024. But a landlord exodus driven by rising state government taxes that is part of the reason more homes have hit the the market than in any other city over the past year will see the city lag behind almost every other capital. The PropTrack Property Market Outlook Report has forecast 1-4 per cent for the city’s property market in the next 12 months that could bring the median house price to more than $950,000. PropTrack economic research director Cameron Kusher said while Melbourne was expected to attract less home price growth than Sydney, Brisbane, Adelaide and Perth, it could potentially double the about $17,000 (1.9 per cent) growth the Victorian capital unexpectedly notched in 2023. They had been forecast to decline 7 per cent this year.
Speaking as part of REBAA’s end of year analysis for 2023, Mr Assigal said he believed even an uptick in investor sales next year wouldn’t slow the market and predicted there could be as much as 6 per cent growth — about $55,000 for Melbourne’s $917,000 median-priced home. But he said the fate of first-home buyers in the new year could rest with the Australian Prudential Regulation Authority, who he said could price many back into the market by reducing assessment rates for home loans from the current 3 per cent above the home loan rate of the day. An interest-rate cut could also drive demand, and Mr Assigal said either scenario could make Melbourne’s undervalued far west, from Werribee to Hoppers Crossing, and outer northern suburbs, like Epping, hot property. He added that regional areas around Ballarat, followed by Bendigo and Geelong, could also benefit from squeezed homebuyer budgets.
Mr Kusher said despite the fastest increase to interest rates since at least the 1990s, rising costs to build new homes and Victoria accounting for a substantial portion of the nation’s incoming migration would combine to drive home values up. “The fact we are at or near peak interest rate levels could see more people looking to buy next year,” he said. While the Outlook report has flagged a tough year for firsthome buyers around Australia, Mr Kusher said record-low rental vacancy rates could drive some of them to find a way to buy a home and escape from increasingly uncertain tenancies.
article source : www.realestate.com.au
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Rental review 36
85
Rental providers/ property owners have chosen us
Properties leased
$553
15
Average median rent per week
Average days on market
6,688
2,637
Renter enquiries
Renter applications received
99,526
8,009
Property views
360 degree tour viewed
185
0.56%
Leasing inspections conducted
Vacancy rate
We lease more. A snapshot of last months leases. Price
Price
per week
per month
1
$450
$1,955
2
2
$550
$2,389
5
3
2
$650
$2,824
Berwick
4
2
2
$520
$2,259
8 Bernly Boulevard
Berwick
4
2
2
$650
$2,824
3 Petrel Place
Berwick
4
2
2
$650
$2,824
4 Pinnacle Place
Berwick
3
2
2
$420
$1,825
19 Marsh Grove
Berwick
3
2
2
$500
$2,172
68 Elgin Street
Berwick
3
1
6
$500
$2,172
1 Kingsmill Terrace
Berwick
3
2
4
$600
$2,607
12 Souhail Court
Berwick
4
2
2
$550
$2,389
61 Bellevue Drive
Berwick
3
2
1
$400
$1,738
228 Carnival Boulevard
Berwick
3
2
2
$510
$2,216
99 Golf Links Road
Berwick
3
2
2
$600
$2,607
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
11-12 Red Ash Close
Botanic Ridge
4
2
2
$1,050
$4,561
75 Clyde-five Ways Road
Clyde
3
2
1
$420
$1,825
18 Drummond Street
Clyde
4
2
2
$800
$3,475
15 Saltbreeze Circuit
Clyde
3
2
2
$460
$1,998
5 Ballarto Road
Clyde
3
2
4
$550
$2,389
Address
Suburb
2/2 Adamson Road
Beaconsfield
3
1
82 Homestead Road
Berwick
4
29 Fernwren Drive
Berwick
1 County Drive
November -December 2023 Review
We lease more. A snapshot of last months leases. Price
Price
per week
per month
2
$550
$2,389
2
1
$500
$2,172
4
2
2
$590
$2,563
Clyde North
3
2
2
$460
$1,998
16 Cottongrass Avenue
Clyde North
4
2
2
$690
$2,997
7 Dame Avenue
Clyde North
4
2
2
$580
$2,520
6 Fleuve Rise
Clyde North
3
2
2
$500
$2,172
21 Orpington Drive
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
Unit 4/106 Clairmont Avenue
Cranbourne
4
2
2
$530
$2,302
24 Criterion Way
Cranbourne East
3
2
2
$520
$2,259
20 Gwenton Avenue
Cranbourne East
3
2
2
$500
$2,172
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
8 Sabel Drive
Cranbourne North
3
2
2
$500
$2,172
26 Beechtree Way
Cranbourne North
4
2
2
$590
$2,563
11 Dalziell Crescent
Cranbourne North
4
2
2
$525
$2,281
35 Freshfields Drive
Cranbourne North
3
2
1
$450
$1,955
9 Malmesbury Road
Cranbourne North
3
2
2
$485
$2,107
12 Agathis Alley
Cranbourne North
3
2
2
$540
$2,346
7 Gillespie Court
Cranbourne North
4
1
0
$450
$1,955
6 Merlin Drive
Cranbourne North
4
2
2
$495
$2,150
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
6 Incana Court
Cranbourne West
4
2
2
$500
$2,172
83 Morningside Boulevard
Cranbourne West
3
2
2
$600
$2,607
Unit 11/31 Stud Road
Dandenong
1
1
1
$320
$1,390
7 Giles Retreat
Endeavour Hills
3
1
3
$440
$1,911
Address
Suburb
3 Salvia Way
Clyde
4
2
22 Janessa Drive
Clyde North
3
26 Risely Road
Clyde North
33 Nunkeri Court
November -December 2023 Review
We lease more. A snapshot of last months leases. Price
Price
per week
per month
1
$450
$1,955
2
1
$390
$1,694
2
1
2
$460
$1,998
Hallam
1
1
1
$350
$1,520
13 Heather Court
Hampton Park
3
1
4
$430
$1,868
Sybella Avenue
Koo Wee Rup
3
1
2
$550
$2,389
1/60 Sunnyvale Drive
Langwarrin
2
1
1
$435
$1,890
18/80-84 Potts Road
Langwarrin
2
1
1
$440
$1,911
10 Murdoch Place
Langwarrin
3
2
2
$640
$2,780
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
1A Avisha Way
Narre Warren
3
2
1
$520
$2,259
49 Summerlea Road
Narre Warren
3
1
2
$550
$2,389
5 Murdoch Avenue
Narre Warren
3
2
0
$500
$2,172
11 Hermitage Rise
Narre Warren
4
2
2
$500
$2,172
10 Hansen Court
Narre Warren
4
2
2
$600
$2,607
23 Madison Avenue
Narre Warren
3
2
2
$500
$2,172
6 Broadacres Court
Narre Warren
5
2
2
$650
$2,824
38 Kurrajong Road
Narre Warren
3
2
6
$580
$2,520
9 Franleigh Drive
Narre Warren
3
2
2
$380
$1,651
109A A\'beckett Road
Narre Warren North
3
2
1
$495
$2,150
19 Ardenne Court
Narre Warren South
4
2
2
$575
$2,498
7/363-365 Princes Highway
Noble Park
2
1
1
$470
$2,042
39 Denton Drive
Officer
3
2
2
$520
$2,259
2 Levens Way
Officer
4
2
2
$450
$1,955
143 Mary Street
Officer
2
1
1
$440
$1,911
15 Austen Avenue
Officer
4
2
2
$595
$2,585
23 Azalea Avenue
Pakenham
4
2
2
$480
$2,085
26 Newbury Street
Pakenham
3
2
2
$490
$2,129
56 Belmont Crescent
Pakenham
3
2
1
$450
$1,955
Address
Suburb
2/66-68 High Street
Frankston
2
1
Unit 319/16 Clyde Street Mall
Frankston
2
2/5 Candlebark Crescent
Frankston North
4/5 Windsor Street
November -December 2023 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
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