It doesn’t matter where you currently live in Australia, rental demand is at an all-time high nationwide. With lines of potential renters running around the block at open inspections, demand is outweighing supply in an unprecedented fashion. We’ve seen it in the sales market and now more than even in the rental market. In December last year alone new rental listings were down 29.2% year on year across the country.
We’re seeing this year start with the same narrative in our local areas of South Yarra and the surrounding suburbs. Supply simply cannot keep up with demand – Realestate.com.au reported 2,491 interested renters for a home in the South Yarra region, and there were only 41 houses available to rent over the past month. The story for units is no different; 10,821 renters to 401 units available. It’s not unusual to see well over 2,000 views within a matter of days when we list a rental in South Yarra, Prahan, Abbotsford and our surrounding neighborhoods.
There are no signs that rental demand is slowing. These two scenarios amongst others need to happen to ease the rental crisis:
- Investors list more properties for rent
- Current renters become buyers
Both lead to more homes needing to be available (and accessible) to buy, and that has many challenges in itself. In a more positive light, what we are seeing is investors re-entering the market in our key areas. This is promising in that it should lead to more properties available to rent. We usually see this when there’s a downturn in house prices. According to Domain, in December 2022 house prices in Melbourne experienced the steepest annual decline in three and a half years. This ease of house prices has helped investors get back in the market, as they’re looking for a good buy.
It’s important to remember that whilst prices are decreasing from record highs, Melbourne house prices are still 17.2% higher than before the pandemic property boom. So, if you are looking to sell, despite the more recent downturn, you’re still in a good position to do so. That’s provided you have means to either buy back in or it’s an investment property you’re selling.
If you’re in a position to lease a property, there really is no better time than now. With so much demand, rental prices are strong, potential tenants are of high quality, and most of all, you get the satisfaction of helping put a roof over someone’s head who needs it. You won’t need to wait to find your ideal tenant for long either. At MPG, we’re leasing properties soon after the first inspection and on average in the last 6 months, they are leased in under 8 days.
If you are looking to add to your portfolio, South Yarra and the surrounding suburbs should be on your list. These suburbs are our bread and butter at MPG and if you would like to find out more, our expert team is here to help.