The First Signs of a Rental Recovery Since March 2020
Melbourne property rental prices have finally started to rise conservatively from the lows of COVID-19 affected 2021, making it the first sign we are heading into a rental recovery. With Melbourne considered to be the most affordable capital city for rentals in the country, we have reason to see more growth and demand in Melbourne’s rental market in the next month due to the return of overseas students and immigration.
The Core Logic Quarterly Rental Review shows that although there were mild rental median changes, with rental prices growing a steady 1.2% over the last quarter in Melbourne, the average property nationally grew 3.9% in the December 2021 quarter, making the Melbourne rental market still great value for renters.
Rental providers will start to feel optimistic with the return of international students from this month to start the 2022 university year. With over 200,000 international students keen to study in Victoria every year, our government, rental providers and universities will be pleased to see a similar figure return, to help boost the economy, reducing the vacancy rate in properties and see Melbourne be more in line with the national growth. Besser and Co finds that students prefer to base themselves close to the CBD and the suburbs that service our world-renowned universities, so we will see an upward swing in rental prices in our serviced areas.
International students and immigrants are likely to raise the median prices for units and apartments, whereas homes with multi bathrooms or provision to create share accommodation could see a premium. Median house rentals in Melbourne grew 3.5% in the last quarter due to families returning to our capital cities with the expected pressure from the government to work back in the office, whereas units only grew 1.4% the lull before the student onslaught. It’s encouraging, as it’s the first quarter of growth in both sectors since March 2020 creating a positive trend coming into the new quarter.
Caulfield has experienced a swift rise over the last quarter (2.8% in average rental price), a figure likely to grow further due to the need for students and teaching professionals to be close to Monash University’s Caulfield campus.
With an ever-expanding rent roll and a dedicated team of property experts, Besser and Co. can offer personalised advice to assist you in building your property portfolio and managing your rental properties.