Rental Market Update October - November 2023 Review
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November report
From our corporate director Dean O’Brien
In real estate, as in life, patience and balance are key. The decision to buy, sell, stay put, or rent is deeply personal and should be made after careful self-reflection and consultation with experienced advisors. It's crucial to think long-term and avoid impulsive reactions. As we approach the new year, supply will be a critical factor to monitor in the property market, potentially overshadowing the impact of interest rates. Current trends indicate that investors represent roughly 33% of property sellers, with those over 60 emerging as the primary age group among landlords. This shift suggests a reduced inclination among younger people to invest in property, a trend mirrored by a 21% drop in new dwelling approvals from January to August 2023 compared to the previous year. Demand is expected to significantly shape the real estate market in 2024. Despite high entry barriers, demand remains robust. Australia is projected to be among the top three OECD countries in terms of population growth through 2030, with a significant portion of this increase occurring in Victoria. Looking at 2024 trends, "Solar Panels," "Sheds," and "Furnished" are the top keywords in rental searches, offering valuable insights for property investors. It's also worth noting that government solar rebates will decrease from January 1, 2024, and energy prices are anticipated to rise by up to 25%, adding to the existing 35% increase experienced this year. An analysis of the 12-month change in dwelling prices in Metro Melbourne shows an average increase of 3%. This contrasts with Sydney's 10.2%, Perth's 13.5%, Brisbane's 10.7%, and Adelaide's 7.6%. In Regional Victoria, however, there has been a 2.2% decrease in home prices.
IThe rental market has cooled recently, attributed largely to seasonal trends, as people prefer not to move during the Christmas period. The 2024 forecast for Victoria's rental market suggests a continuing shortage of homes, leading to increased pressure on landlords due to higher mortgages and rising rents. As we celebrate the festive season, remember that the best gift is the joy of being with family. Wishing you a Merry Christmas and a prosperous New Year. Please remember that the information shared is general in nature, and it's always advisable to seek specific legal, financial, and tax advice tailored to your unique situation.
Thank You Dean O’Brien Director & Co Founder
Melbourne housing affordability: Most undersupplied markets revealed, calls to reform on ‘investor-bashing’ policies Almost half Melbourne’s most undersupplied housing and rental markets are in the city’s east. New research from data-led buyer’s agency InvestorKit has revealed the postcodes across Victoria with the highestgrowing demand and worst shortages in both rental and housing supply amid calls for reforms on the state government’s “investor-bashing” policies. It comes after PropTrack’s Housing Affordability Index released in September showed the state’s housing affordability had reached its lowest level in more than three decades, while the rental vacancy rate plummeted to a record low of 1.07 per cent in October. ‘Rental catastrophe’: Victoria’s vacancy rate plunges to a record low Victoria’s housing affordability hits worst level in more than three decades InvestorKit’s data shows areas in Melbourne’s east including Heathmont, Mooroolbark, Croydon North and Scoresby were all among the most undersupplied markets in the city. Founder and head of research Arjun Paliwal said Victoria’s “investor-bashing policies” were scaring property investors away, leading to less available rental homes and as a result, higher competition among renters and worsening affordability.
“With the ever increasing interest rates, a lot of those renters are people who thought they would be in a position to purchase but are going to do another year of renting instead,” Ms Molinaro said. “There’s a lot of lack of supply at the moment and we have a lot of renters on the market looking to lease properties but we don’t have enough to offer. We still have renters offering to pay higher than advertised prices and trying to negotiate due to the competition.” The recently released Victorian Housing Statement has flagged plans to fine agents and landlords who accept rental bidding. While this hasn’t come into effect, it is currently illegal to solicit rental bids in Victoria. Other suburbs where buyers and renters are feeling the pinch of low stock levels include Mulgrave in the southeast with a median house price of $1.04m, and in the northeast, Rosanna and Macleod — where the typical house costs $1.2m and $1,136,500, respectively. Mr Paliwal added that Melbourne was now a “second-last choice” as an investment destination among capital cities, according to a Property Investment Professionals of Australia (PIPA) survey. He said a decline in investors would also lead to lower stock mobility. “Owner-occupiers tend to hold stock longer than investors, leading to less available supply in the long term, ultimately hurting housing affordability,” he said.
“Victoria already has the highest stamp duty rate in the nation,” Mr Paliwal said. “The government’s decision to increase land tax over the next 10 years will only make the situation worse — we’ve already seen the consequences.” OBrien Real Estate Blackburn auctioneer Anthony Molinaro echoed that new investment property taxes introduced this year were “double-edged swords’. “Investors are realising the money they’re getting isn’t covering their repayments and capital growth has started to slow down, so they’re getting out of the market and most of those properties are going to owner-occupiers instead of renters,” Mr Molinaro said. He added that state government first-home buyer policies such as the Victorian Homebuyer Fund, where buyers can enter the market with as little as a 5 per cent deposit, were also contributing to supply issues by increasing the number of purchasers in the market. “These are bandaid approaches,” the auctioneer said. The agency’s property manager Anna Molinaro added that the lack of housing supply was noticeably hurting renters in the eastern suburbs, with many copping $100 a week increases to keep a roof over their heads.
article source : www.realestate.com.au
Do you have an investment property? Transfer management to us ... it's easy.
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 49
92
Rental providers/ property owners have chosen us
Properties leased
$538
11
Average median rent per week
Average days on market
8,751
3,376
Renter enquiries
Renter applications received
126,012
10,272
Property views
360 degree tour viewed
208
0.69%
Leasing inspections conducted
Vacancy rate
We lease more. A snapshot of last months leases. Price
Price
per week
per month
Address
Suburb
3/3 Wallace Avenue
Bayswater
2
1
1
$420
$1,825
5/241 Soldiers Road
Beaconsfield
4
3
2
$580
$2,520
1/13 Maryn Close
Berwick
3
1
1
$430
$1,868
17 Bangalay Place
Berwick
3
2
2
$520
$2,259
8 Sarah-Louise Place
Berwick
4
2
2
$525
$2,281
32 Chirnside Road
Berwick
4
2
2
$530
$2,302
28 Stefan Drive
Berwick
3
2
2
$530
$2,302
58 Grices Road
Berwick
4
2
2
$560
$2,433
4/17B Hazeldene Court
Berwick
4
3
2
$560
$2,433
343A Centre Road
Berwick
4
3
2
$585
$2,541
40 Caravan Parade
Berwick
4
2
2
$710
$3,084
5 Sunview Place
Berwick
5
3
2
$785
$3,410
1 Adelaide Close
Berwick
3
2
2
$570
$2,476
228 Carnival Boulevard
Berwick
3
2
2
$510
$2,216
99 Golf Links Road
Berwick
3
2
2
$600
$2,607
82 Homestead Road
Berwick
4
2
2
$550
$2,389
29 Fernwren Drive
Berwick
5
3
2
$650
$2,824
1 County Drive
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
1 Ember Street
Clyde
4
5
2
$750
$3,258
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
3 Salvia Way
Clyde
4
2
2
$550
$2,389
26 Broadbank Crescent
Clyde North
4
2
2
$480
$2,085
October - November 2023 Review
We lease more. A snapshot of last months leases. Price
Price
per week
per month
Address
Suburb
8 Trainers Way
Clyde North
3
2
1
$460
$1,998
4 Emery Drive
Clyde North
4
2
2
$570
$2,476
84 Burnbank Parade
Clyde North
4
3
2
$650
$2,824
10 Mabillon Way
Clyde North
4
2
2
$550
$2,389
22 Janessa Drive
Clyde North
3
2
1
$500
$2,172
26 Risely Road
Clyde North
4
2
2
$590
$2,563
6 Fleuve Rise
Clyde North
3
2
2
$500
$2,172
33 Nunkeri Court
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
7/40 Hudson Street
Coburg
2
1
1
$425
$1,846
63 Jamieson Street
Corinella
4
2
2
$450
$1,955
Unit 2/17 Russell Street
Cranbourne
3
3
1
$460
$1,998
8 Valerie Drive
Cranbourne
3
1
2
$470
$2,042
39 Camms Road
Cranbourne
3
1
2
$490
$2,129
Unit 4/106 Clairmont Avenue Cranbourne
4
2
2
$530
$2,302
33 Villager Street
Cranbourne East
2
1
1
$430
$1,868
24 Criterion Way
Cranbourne East
3
2
2
$550
$2,389
24 Criterion Way
Cranbourne East
3
2
2
$520
$2,259
20 Gwenton Avenue
Cranbourne East
3
2
2
$500
$2,172
18 Amburla Drive
Cranbourne North
4
2
2
$500
$2,172
5 Abrus Circuit
Cranbourne North
4
2
4
$530
$2,302
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
8 Sabel Drive
Cranbourne North
3
2
2
$500
$2,172
7 Gillespie Court
Cranbourne North
4
1
0
$450
$1,955
6 Merlin Drive
Cranbourne North
4
2
2
$495
$2,150
26 Beechtree Way
Cranbourne North
4
2
2
$590
$2,563
6 Incana Court
Cranbourne West
4
2
2
$500
$2,172
Unit 11/31 Stud Road
Dandenong
1
1
1
$320
$1,390
October - November 2023 Review
We lease more. A snapshot of last months leases. Price
Price
per week
per month
Address
Suburb
Unit 7/6 Byron Street
Elwood
1
1
1
$400
$1,738
7 Giles Retreat
Endeavour Hills
3
1
3
$440
$1,911
7/164 Napier Street
Essendon
2
1
1
$450
$1,955
Unit 3/256 Cranbourne Road Frankston
3
1
1
$420
$1,825
2/66-68 High Street
Frankston
2
1
1
$450
$1,955
2/5 Candlebark Crescent
Frankston North
2
1
2
$460
$1,998
13 Heather Court
Hampton Park
3
1
4
$430
$1,868
9 Bower Vine Road
Junction Village
4
2
2
$600
$2,607
Sybella Avenue
Koo Wee Rup
3
1
2
$550
$2,389
33 James Street
Lang Lang
3
1
2
$450
$1,955
1/60 Sunnyvale Drive
Langwarrin
2
1
1
$435
$1,890
18/80-84 Potts Road
Langwarrin
2
1
1
$440
$1,911
97 Darling Way
Narre Warren
3
1
0
$470
$2,042
1/105 Springfield Drive
Narre Warren
3
2
2
$490
$2,129
1A Avisha Way
Narre Warren
3
2
1
$520
$2,259
11 Hermitage Rise
Narre Warren
4
2
2
$500
$2,172
49 Summerlea Road
Narre Warren
3
1
2
$550
$2,389
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
109A A\'beckett Road
Narre Warren North
3
2
1
$495
$2,150
57 Gledhill Street
Narre Warren South
3
2
2
$500
$2,172
105 Robinswood Parade
Narre Warren South
4
2
2
$620
$2,693
19 Ardenne Court
Narre Warren South
4
2
2
$575
$2,498
Unit 2/13 Joy Parade
Noble Park
2
1
2
$310
$1,347
22 Cherrington Avenue
Officer
3
2
2
$490
$2,129
82 Dodson Road
Officer
4
2
1
$520
$2,259
39 Denton Drive
Officer
3
2
2
$520
$2,259
143 Mary Street
Officer
2
1
1
$440
$1,911
Unit 6/1 Village Way
Pakenham
3
1
1
$420
$1,825
49 Bluehills Blvd
Pakenham
4
2
2
$470
$2,042
23 Azalea Avenue
Pakenham
4
2
2
$480
$2,085 October - November 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 #4
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 #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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