NOW Is The Perfect Time To Lease Your Apartment In Melbourne
Perfect Time To Lease Your Apartment
It’s looking very sunny for property investors in this part of the world. According to CoreLogic research, residential rents in Melbourne’s inner-city, including Southbank and Docklands have soared as much as 29% over the past year.
Similar surges are happening throughout Australia, with record rental highs across all property types. Tim Lawless from CoreLogic predicts that the unit sector will likely rise faster than standalone homes moving forward, identifying ‘the normality of overseas migration’ pushing up demand.
According to Dr Nicola Powell, Chief of Research & Economics for Domain, the record-high rents and reduced rent choices have resulted in tightening conditions that continue favouring landlords. The expert said these conditions would also increase the likelihood of rising rental prices after the reduction in rental prices seen during COVID.
She further predicts, “The rise in investor activity, the arrival of overseas migrants, and the return of international students will see rental demand remain elevated.”
In the past 12 months, median rents increased by 9.4 per cent across Sydney, 7 per cent in Melbourne, 11.7 per cent in Brisbane and 9.8 per cent in Adelaide. Similarly, rents jumped by 6.4 per cent in Perth, 9 per cent in Hobart and 9.2 per cent in Canberra.
What we are seeing at Besser + Co
Our head of property management, Marcel Dybner, has seen evidence of this first-hand. “We recently had a property for lease in Southbank which we increased by 10% after the previous tenant left. Within 24 hours, we had over 150 people registered to inspect the apartment. We then increased the price by another 15% and still had in excess of 60 people in attendance,” he shared.
“Another apartment was advertised for $430 per week, and due to the unexpected level of interest, we increased by $50 prior to inspection and still received multiple applications.”
With this type of boost in prices and competition, naturally, a flow-on effect will be seen in neighbouring areas. Marcel confirms that there is indeed an increase in demand for rental apartments in “suburbs like St Kilda, South Yarra and Caulfield where enquiries are starting to increase and interest in properties is picking up.”
We have had to recruit more inspection staff to give prospective tenants a fair opportunity to visit the properties they are enquiring about. “We now do inspections six days a week, and we’re thinking of opening on Sundays too.” Marcel explains.
“People are trying to find their new home, and we want to help them as much as possible. For investors, it is a good time to secure favourable long-term tenants.” The interest rate rise is forcing many who were considering buying a home to change direction and continue renting until there is more stability, adding to the low vacancy rates and intense competition for desperate tenants.
Choosing Besser + Co to maximise your investment income
As a leading property management and sales agency in Melbourne’s inner suburbs, our expertise helps you achieve the best possible price for your apartment or home. We have qualified tenants at the ready, waiting for new rentals to come onto the market. For some properties, we can refer to our database without needing to advertise or market, saving our landlords money.
At Besser + Co, we work closely with sellers and landlords to service their property needs. Market trends and shifts are inevitable, and we are well-equipped to help our clients navigate the best way forward. If you are looking for a current valuation on your home or investment property in Melbourne’s inner-city or surround, now is the time to get professional advice from the team at Besser + Co.
What is the process for renting out your property with Besser + Co?
We aim to make the process as quick and seamless as possible for our clients. We have fine-tuned our systems to ensure minimal vacancy periods, expert third-party cleaning, maintenance and repairs and, of course, thorough condition reports to safeguard your investment. Our commitment extends for the duration of the lease which involves transparent and respectful communication with tenants for the benefit of the property and landlord.
Besser + Co prioritises income flow with stringent rental payment scheduling and reporting. No stone is left unturned when your home is under our professional property management. Once you contact our office, we will arrange all aspects of the rental process to allow you to get on with other important things.
How do I decide whether to sell or rent my property?
Given the positive incline of rental trends, now is an excellent time to consider leasing out your apartment. Even if you are thinking about a short-term offering, plenty of keen tenants are looking for 6, 9 and 12-month leases to tie them over whilst they are looking to buy, renovate or transition.
Selling your property may be the right decision for you as well, and despite some negative press, the market in Melbourne’s inner city, inner east and south-east is strong. As we welcome back overseas migrants and students, international buyers are also keen to secure properties in Australia, particularly Melbourne.
We can provide a tailored analysis based on the features, location, and exact market trends relevant to your property. Get in touch with our friendly team of real estate experts in Melbourne for some confidential advice.