I live in Point Cook and notice that there are so many houses for rent (over 300 on re.com.au in this suburb alone) when we moved here we were excited to find our home for only $350 a week (we were previously paying very high rent in Williamstown) but since then the prices have dropped even more to around $320 for homes similair to ours and a few agents are now offering 2 weeks free rent.
Do rents ever go down significantly
- Thread starter pickle pickle
- Start date
I live in Point Cook and notice that there are so many houses for rent (over 300 on re.com.au in this suburb alone) when we moved here we were excited to find our home for only $350 a week (we were previously paying very high rent in Williamstown) but since then the prices have dropped even more to around $320 for homes similair to ours and a few agents are now offering 2 weeks free rent.
Consumer confidence has hammered the rental market atm too. People are just not budging either from current rentals or from living at home.
We have a 2/1/1 unit for rent - 6 months ago it was a hot demand area and rented for $310 no problems. Is in a top location (5mins walk to shops, train, 10mins drive to CBD, beach etc).
Tenant has left to move into her sister's new ppor to help with mortgage pmts ... and even with rent dropped to $295, not even a whiff.
Will go down to $280 if nothing by Wednesday.
We have a 2/1/1 unit for rent - 6 months ago it was a hot demand area and rented for $310 no problems. Is in a top location (5mins walk to shops, train, 10mins drive to CBD, beach etc).
Tenant has left to move into her sister's new ppor to help with mortgage pmts ... and even with rent dropped to $295, not even a whiff.
Will go down to $280 if nothing by Wednesday.
Ha ha, yep that's me, except for the free gardening and lawns. Oh and except for the $30 or $40 under market as well.
I thought we were a little under market until I had a look on RE dot com the other day. We got a letter saying one of our leases was due to be renewed and the PM was suggesting it couldn't take an increase this time. When I checked I had to agree with her. There are almost 100 places available in the general area, including surrounding suburbs and a goodly number of them are brand spanking new 4 bedroom homes with asking prices of not a whole lot more than we are getting now.
Commercial does definitely seem the better bet at the moment, trouble is around here they can be empty for two years or more - ouch.
I guess it all depends on the supply vs demand.
Point Cook has had a truckload of construction over the last 7 years, and while there has been decent capital growth, rental growth has really plateaued.
while over the other side of town southeast, i have just had a property le let go from $315 pw to $350 pw after a 12 month lease expired and tenant moved out. alot less new dwellings being built in the later suburb though.
cheers,
Nathan
We had an IP once that had NO rent increases for two years...
I guess you could call that rents going down - compared to inflation and other living costs.
This was for a 2x1 in the normal burbs.
I reckon you would see a rent drop in places like CBD's if there was a glut of new apartment buildings, all owned by investors and fighting over a shortage of tenants.
Places like the Gold Coast may have experienced it as well when their glut of apartment buildings occurred.
Sim
Administrator
There are a lot of rentals in Artarmon - particularly units.
There is a definite cyclic nature to the rental market here - which does generally reflect the wider property market somewhat.
In the 13 years we've been living in the area I've seen several cycles of a very tight rental market where tenants will beg to be allowed to submit an application - but the agent only takes the first four of five applications and the other thirty people coming to the open inspection miss out.
I've also seen very soft rental markets where landlords are offering up to 6 week rent free and some even throwing in a free holiday or other bonuses with their property!
Rents definitely do fall - it all depends on supply on demand.
I've had to lower rents on my units in Adelaide from time to time - but given the location (very close to large university/hospital), the longest I've ever had a vacancy was about 6 weeks and I only dropped the rent about $20pw from what the previous tenant was paying - just to meet the market.
I generally try and price my properties at the upper end of the market range for the area - which I can get away with because there are generally so few properties available to rent nearby due to the demand - I'm rarely competing with other similar properties, despite the large number of rentals in the area!
There is a definite cyclic nature to the rental market here - which does generally reflect the wider property market somewhat.
In the 13 years we've been living in the area I've seen several cycles of a very tight rental market where tenants will beg to be allowed to submit an application - but the agent only takes the first four of five applications and the other thirty people coming to the open inspection miss out.
I've also seen very soft rental markets where landlords are offering up to 6 week rent free and some even throwing in a free holiday or other bonuses with their property!
Rents definitely do fall - it all depends on supply on demand.
I've had to lower rents on my units in Adelaide from time to time - but given the location (very close to large university/hospital), the longest I've ever had a vacancy was about 6 weeks and I only dropped the rent about $20pw from what the previous tenant was paying - just to meet the market.
I generally try and price my properties at the upper end of the market range for the area - which I can get away with because there are generally so few properties available to rent nearby due to the demand - I'm rarely competing with other similar properties, despite the large number of rentals in the area!
Phone call last night - rented at $295 (phew!).
Still ... a $15/wk drop ... hopefully pick some of that back up in summer with rent rise at 6mths.
mining towns
It's all supply and demand, we've got a couple of houses in Roxby Downs, bought them in 2003.
Rents went from $250 p/w slowly upto about $400 p/w then a big release of land, lots of resi building, mine shut down a couple of shafts, drop in production, got rid of heaps of works. rents down to $300 p/w, have slowly come back up and are now sitting around $430 p/w mark.
Just depends on where you are and what the demand is like.
It's all supply and demand, we've got a couple of houses in Roxby Downs, bought them in 2003.
Rents went from $250 p/w slowly upto about $400 p/w then a big release of land, lots of resi building, mine shut down a couple of shafts, drop in production, got rid of heaps of works. rents down to $300 p/w, have slowly come back up and are now sitting around $430 p/w mark.
Just depends on where you are and what the demand is like.
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