Rental Market Update September - October 2023 Review
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October report
From our corporate director Dean O’Brien
According to a recent report by the government agency NHFIC, there's an anticipated shortfall of 175,000 homes by 2027. To address this, the industry has taken an innovative approach. A study by CoreLogic, in collaboration with Archistar and Blackfort, has pinpointed 230,000 potential sites in Melbourne suitable for granny flats. This solution presents both an accessible and rapid option to address the housing deficiency. The report highlighted Mornington Peninsula as the top locality for such developments with 23,870 sites. Following closely are the City of Casey, Monash, Knox, and Manningham with 16,861, 13,960, 13,741, and 13,063 potential sites respectively. For prospective buyers, Melbourne stands out. As per CoreLogic's October figures, home values rose by a modest 0.5%, the least among the major five capital cities. However, a broader view reveals that Melbourne's growth over the past year is only 2.4%, as opposed to Adelaide's 6.5%, Brisbane's 7.8%, Sydney's 9.0%, and Perth's 10.8%. In the regional Victoria market, there's a silver lining as home value dips seem to be plateauing, with a slight 0.1% hike in the last month. Melbourne witnessed a bustling auction scene in October. 2023 has so far favored auctions over private sales, as indicated by the latest REIV research. For sellers aspiring for optimal outcomes, it's prime time to consider auctions. The season remains vibrant, expected to last until 23rd December. Anticipation is brewing as the Reserve Bank's decision looms on Melbourne Cup Day. Homeowners are gearing up for a potential rate hike, echoed by forecasts from all major banks. However, as with weather predictions, it's always prudent to be prepared—so keep that umbrella at hand during the Melbourne Cup. A favorable interest rate decision by the US Federal Reserve on Thursday might send some positive vibes Australia's way. The property investment realm seems steady, with minor rental price hikes in October. After 36 months of back-to-back increases, the market momentum seems to have normalized. The ABS's October data reveals a 7% surge in building approvals, the first in a long while. However, approvals are still lagging by 22.9% based on year-on-year figures.
The property investment realm seems steady, with minor rental price hikes in October. After 36 months of back-toback increases, the market momentum seems to have normalized. The ABS's October data reveals a 7% surge in building approvals, the first in a long while. However, approvals are still lagging by 22.9% based on year-onyear figures. Thank You Dean O’Brien Director & Co Founder
Australia now has the lowest number of homes to rent since 2012
Renters have been delivered more bad news with new data showing that the number of homes available to rent is at its lowest since 2012. Over the four weeks to October 1 rental listings nationally fell to just 90,153, a rental shortfall of approximately 47,500 according to CoreLogic Quarterly Rental Review.
She pointed to overall cost of living rises as a contributing factor to rental rises moderating. "With the rising cost of living adding additional pressure on renter's balance sheets, it is likely tenants have hit an affordability ceiling, seeking to grow their households to share the growing rental burden." Sydney remains the most expensive capital city to rent in with median dwelling rent at $726 per week. This is followed by Canberra ($649p/w) and Darwin ($615p/w). Adelaide ($548p/w) lost the most affordable rental capital title to Hobart ($529 p/w), with Adelaide recording a quarterly rental rise equivalent to $9 p/w while Hobart rents fell -$15 p/w.
There is now a rental shortfall of approximately 47,500 homes according to CoreLogic Quarterly Rental Review.
"Record high net overseas migration, fuelled by a combination of an increased flow of new arrivals and weaker departure numbers, coupled with a continued shortfall in rental listings, saw the vacancy rates falling to new record lows across both the combined capitals and combined regional markets," CoreLogic Economist and report author Kaytlin Ezzy said. Rental vacancies stood at just 1 per cent in the combined capitals while combined regionals market the vacancy rate came in at 1.2 per cent. Despite the low vacancy rate however rental values, the pace of rental growth was down for the September quarter. Nationally rental values rose 1.6 per cent over the quarter, down from the 2.2per cent rise seen in the June quarter and a full percentage point below the recent peak rate recorded over the three months to April of 2.6 per cent.
Meanwhile the report also revealed the most expensive and cheapest places to rent in Australia's capital cities. In Sydney the most expensive suburbs were overwhelmingly in the city's eastern suburbs with the highest rent coming out for houses in harbourside Vaucluse, which have a median weekly rent of $2588. Of the most expensive suburbs in Sydney to rent, houses in South Coogee had the biggest hike over the September quarter with a rise of 7.4 per cent, taking the price to $1,752. The cheapest places to rent in Sydney were overwhelmingly units in the city's south-west and outer west with the cheapest option a unit in Carramar, which has a median rent of $389. In Melbourne, renting a house in Brighton is the most expensive option with the median rent on such a property coming in at $1361 weekly. At the other end of the scale a unit in Melton South is the cheapest rental option in the Victorian capital with the median rent at $345.
CoreLogic Economist and report author Kaytlin Ezzysaid there were a number of factors at play driving the slowdown in rental growth amid such limited rental availability. "Worsening affordability continues to be a significant factor placing downward pressure on the pace of rental growth in recent months," Ms Ezzy said. "After recording a small dip over the first few months of COVID, national rents have risen for 38 consecutive months, taking rental values 30.4 per cent higher since July 2020 and adding the equivalent of $137 to the median weekly rent, said Ms Ezzy.
article source : view.com.au
Do you have an investment property? Transfer management to us ... it's easy.
Step 1:
Step 2:
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 41
88
Rental providers/ property owners have chosen us
Properties leased
$544
12
Average median rent per week
Average days on market
7,982
2,953
Renter enquiries
Renter applications received
117,679
9,121
Property views
360 degree tour viewed
224
0.58%
Leasing inspections conducted
Vacancy rate
We lease more. A snapshot of last months leases.
Address
Suburb
Price
Price
per week
per month
3/3 Wallace Avenue
Bayswater
2
1
1
$420
$1,825
5/241 Soldiers Road
Beaconsfield
4
3
2
$580
$2,520
5 Slingsby Avenue
Beaconsfield
4
1
4
$550
$2,389
343A Centre Road
Berwick
4
3
2
$585
$2,541
28 Stefan Drive
Berwick
3
2
2
$530
$2,302
32 Chirnside Road
Berwick
4
2
2
$530
$2,302
1/13 Maryn Close
Berwick
3
1
1
$430
$1,868
1 Adelaide Close
Berwick
3
2
2
$570
$2,476
4/17B Hazeldene Court
Berwick
4
3
2
$560
$2,433
40 Caravan Parade
Berwick
4
2
2
$710
$3,084
5 Sunview Place
Berwick
5
3
2
$785
$3,410
17 Bangalay Place
Berwick
3
2
2
$520
$2,259
58 Grices Road
Berwick
4
2
2
$560
$2,433
8 Sarah-Louise Place
Berwick
4
2
2
$525
$2,281
14 Theodore Terrace
Berwick
2
1
1
$420
$1,825
7 Kalastaire Grove
Berwick
4
2
2
$550
$2,389
5 Sunview Place
Berwick
5
3
2
$785
$3,410
33 Travertine Loop
Berwick
2
2
1
$480
$2,085
Unit 2/26 Albrecht Avenue
Berwick
2
1
1
$430
$1,868
38 Strathavan Drive
Berwick
3
2
2
$530
$2,302
16 Cimbrone Place
Berwick
4
2
2
$600
$2,607
Unit 3/53 Elgin Street
Berwick
3
2
2
$550
$2,389
3 Ladd Way
Berwick
4
2
2
$570
$2,476
7 The Gateway
Berwick
2
1
1
$425
$1,846
114 Mansfield Street
Berwick
4
2
2
$560
$2,433
17 Pioneer Court
Berwick
3
1
1
$460
$1,998
1 Ember Street
Clyde
4
5
2
$750
$3,258
14 Keskadale Drive
Clyde
4
2
2
$560
$2,433
47 Creekside Street
Clyde
3
2
2
$495
$2,150
September - October 2023 Review
We lease more. A snapshot of last months leases. Price
Price
per week
per month
2
$535
$2,324
2
2
$550
$2,389
4
2
2
$480
$2,085
Clyde North
4
2
2
$570
$2,476
8 Trainers Way
Clyde North
3
2
1
$460
$1,998
84 Burnbank Parade
Clyde North
4
3
2
$650
$2,824
4 Catfish Street
Clyde North
3
2
2
$480
$2,085
7/40 Hudson Street
Coburg
2
1
1
$425
$1,846
63 Jamieson Street
Corinella
4
2
2
$450
$1,955
4 Alexander Circuit
Craigieburn
3
2
1
$450
$1,955
39 Camms Road
Cranbourne
3
1
2
$490
$2,129
8 Valerie Drive
Cranbourne
3
1
2
$470
$2,042
Unit 2/17 Russell Street
Cranbourne
3
3
1
$460
$1,998
4 Pepperbush Circuit
Cranbourne
4
2
2
$590
$2,563
33 Villager Street
Cranbourne East
2
1
1
$430
$1,868
24 Criterion Way
Cranbourne East
3
2
2
$550
$2,389
52 Criterion Way
Cranbourne East
3
2
2
$485
$2,107
18 Amburla Drive
Cranbourne North
4
2
2
$500
$2,172
5 Abrus Circuit
Cranbourne North
4
2
4
$530
$2,302
22 Olivebank Crescent
Cranbourne North
4
2
2
$540
$2,346
1 Arapiles Street
Cranbourne North
4
2
2
$600
$2,607
115 Courtenay Avenue
Cranbourne North
4
2
2
$550
$2,389
9 Rowen Court
Cranbourne North
3
1
2
$480
$2,085
9 Aldous Place
Cranbourne North
3
2
2
$500
$2,172
49 Abrus Circuit
Cranbourne North
3
2
1
$495
$2,150
20 Jasa Crescent
Cranbourne West
4
2
2
$550
$2,389
Unit 704/80 Cheltenham Road
Dandenong
1
1
1
$330
$1,434
1/315 Stud Road
Dandenong North
2
1
2
$400
$1,738
8 Olive Road
Devon Meadows
6
2
3
$1,250
$5,430
Address
Suburb
10 Canyon Avenue
Clyde
3
2
10 Mabillon Way
Clyde North
4
26 Broadbank Crescent
Clyde North
4 Emery Drive
September - October 2023 Review
We lease more. A snapshot of last months leases.
Address
Suburb
Price
Price
per week
per month
Unit 7/6 Byron Street
Elwood
1
1
1
$400
$1,738
21 Shetland Street
Endeavour Hills
3
1
4
$550
$2,389
9 Mossgiel Park Drive
Endeavour Hills
3
1
2
$430
$1,868
7/164 Napier Street
Essendon
2
1
1
$450
$1,955
Unit 3/256 Cranbourne Road
Frankston
3
1
1
$420
$1,825
64 Armata Crescent
Frankston North
4
2
2
$590
$2,563
9 Bower Vine Road
Junction Village
4
2
2
$600
$2,607
33 James Street
Lang Lang
3
1
2
$450
$1,955
Unit 2/15 Glen Orme Avenue
McKinnon
3
1
1
$680
$2,954
Unit 4/40 Collins Street
Mentone
2
1
1
$600
$2,607
97 Darling Way
Narre Warren
3
1
0
$470
$2,042
1/105 Springfield Drive
Narre Warren
3
2
2
$490
$2,129
8 Murdoch Avenue
Narre Warren
3
2
2
$560
$2,433
25 Amber Crescent
Narre Warren
4
2
2
$600
$2,607
57 Gledhill Street
Narre Warren South
3
2
2
$500
$2,172
105 Robinswood Parade
Narre Warren South
4
2
2
$620
$2,693
211 Ormond Road
Narre Warren South
3
1
2
$480
$2,085
82 Robinswood Parade
Narre Warren South
4
2
2
$600
$2,607
17 Highland Crescent
Narre Warren South
4
2
2
$550
$2,389
13 Parish Court
Narre Warren South
5
2
0
$720
$3,128
Unit 2/13 Joy Parade
Noble Park
2
1
2
$310
$1,347
6 Barratt Court
Noble Park
4
2
5
$605
$2,628
22 Cherrington Avenue
Officer
3
2
2
$490
$2,129
82 Dodson Road
Officer
4
2
1
$520
$2,259
49 Bluehills Blvd
Pakenham
4
2
2
$470
$2,042
Unit 6/1 Village Way
Pakenham
3
1
1
$420
$1,825
18 Macleod Circuit
Pakenham
3
2
2
$470
$2,042
5 Sandpiper Close
Pakenham
4
2
2
$550
$2,389
12 Elderberry Way
Pakenham
3
2
2
$450
$1,955
6 Gorham Street
Pakenham
3
2
2
$480
$2,085
70 Queens Road
Pearcedale
4
2
4
$1,490
$6,473
September - October 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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