Has the rental market cooled?

W

WBG Redcliffe

Hi all

Just wondering if the general feeling is still that there are very low vacancies in most areas at the moment?

I have both sides of a new duplex for lease at the moment and there does not seem to be the interest that I thought there would be. They are on the market with Ray White Deception Bay at 300 p/w each. (3br, ens, dlug, dishwasher, a/c, sec screens.)

I did the rounds of the agents and got a rental list and it seems there is quite a lot for the tenants to choose from. Speaking to the PM’s they were of the opinion that the price was right and that the rental market was not as hot as it was 3 months ago.

I of the opinion that it may just be the Rothwell / DBay area. However would like to read the opinions of others who are currently looking for tenants.

Wayne
 
After 1 week of advertising, I had 2 people look at my IP, and 1 person apply.

I dunno if that was due to the advertising (no photos, my fault though.)
or due to a cooling. It still fetched a suitable price, definitely more than I would pay for it.
2 other units in the complex have listed now, but they are 2 bedders and want a little more..

(oh, and it's in NW Canberra..)
 
My view is that the rental market can cool very quickly and that rents are relatively inelastic.

The reason I have this view is that in the past if rental properties were not available or to expensive then you will see an increase in share accommodation and people moving back home. With couples starting families much later they remain much more mobile and able to retract back to alternatives

This process would dramatically shrink demand for property and virtually change the demand profile overnight.

Cheers
 
Is it perhaps seasonal? In the inner north east of Melbourne where I am now the rents have dropped maybe up to $50 pw from their summer high. This is a normal seasonal ebb and flow. Similar situation in Hobart where I just relet a break lease. It took two weeks when normally it would take 1-2 days. We got the same price but it took longer. We always find the break leases a bit of a challenge when they fall in winter.
 
still going great guns in brissy.

we can't hold onto rentals longer than a couple of days.

might just be the area?!?!?! check that the agent is advertising it properly for you and getting heaps of exposure.

cheers
UC
 
I check realestate.com every now and then to keep an eye on our self-managed places.

I looked yesterday and found there seemed to be plenty of houses in my suburb and surrounding suburbs for reasonable prices. Other times I have looked and thought I would not put a dog in some places that are dearer than ours.

Maybe it is because it is the middle of winter, and it is not the best time to be advertising a house - I don't know.

Wylie
 
The area is Coorparoo, 5km from the city and no new builds - so I can only assume it is because of being smack bang in the middle of winter.

I want to raise the rent at one of our places but if they look on realestate.com they might decide to look around. I don't think they will as they know they are under market right now and even creeping up the rent by $10 or $20 per week, which I am contemplating, I still don't think they would get anything like what they have for the same money.

I plan to hold my horses for a couple of months and give them one months' notice. I think the difference may also be that I ticked the "surrounding suburbs" box which brings several other suburbs into the picture.

Wylie
 
Fair enough Wylie, my comment though was about the original post of a New Duplex in D/Bay, which has a lot of new build's in that and surrounding area's.

BB
 
that probably has a lot to do with it...there is also certainly a very proportion of investors out there as opposed to o/o. don't ask me what the % is, but its certainly above normal when you look at the sheer amount of stock going in out there and the numbers of rentals avail on RE.com.

D/bay has North Lakes, Halpine Lakes, Murrumba Downs and Rothwell around it so there are 5 emerging (or new growth - gentified) suburbs all vying for the same piece of the rental market pie

without wanting to sound pessimistic, Warner Lakes may have the same drama initially as a lot of stock is going to be coming onto the market at the same time...it will rent, but my guess is that it wont be like the established markets where there is a steady flow of new properties and healthy competition.
.
 
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Rental market in my neck of the woods is going just Jim Dandy.

Vacancy level is at an all time low, with tenants scrambling to secure whatever they can....at whatever price they can muster.

We've seen rents double in the past 12 months, and fully expect them to double again in the following 12 months.

Tenants capacity to pay is growing quicker than the rent rises, so plenty of scope for further increases.

Joy. :)
 
I spoke to my pm about this yesterday.

I have an IP I'm renoing with the aim of putting it on the (rental) market in the next month in the Melbourne inner suburbs. Looking at RE.com the rents seem to be a bit lower. pm says they're not getting many people through mainly because it's so cold at the moment noone want to spend their weekends looking through properties.

It's bad timing for me, although it means I can realx a bit and not worry about rushing the reno to get it on the market.
 
I understand from a couple of PM sources that June in particular is very slow - being 6 months after the other slow period - Christmas.

I understand that interest should pick up again in mid-late July - coinciding with Jan. Ours is still available - has been on the market for around 4 weeks now. The paving has taken a bit longer than expected, but now it is finished. A few ridiculous low-ball offers, but no panic yet and no reason to consider them - happy to give it another couple of weeks before we look at other options.

Cheers,
 
Just taken 3 weeks to re-let an ip here in Mandurah. Yes the rent went up $30 per week but we are in the middle income range. Lots of rentals available around town now. Hell of a lot for sale too.
cheers yadreamin
 
yadreamin said:
Just taken 3 weeks to re-let an ip here in Mandurah. Yes the rent went up $30 per week but we are in the middle income range. Lots of rentals available around town now. Hell of a lot for sale too.
cheers yadreamin
Click to expand...

Hi yadreamin can you pls elaborate what you leased and what you achieved? I have a 3x2 near new smallish villa single garage that has been vacant for about 5 weeks. The PM is out of town tho and i am looking to shift to a local PM - do you use a local PM and are you happy with them?
 
Not in my favourite part of Melbourne (outer suburbs).

The local paper has a report from the Office of Housing stating that rents have risen by 7.5% in the last year for houses and 2.9% for units.

My appraisal of a typical 3br house earlier in the year indicated a fair rental value of $190pw.

When recently advertised this attracted good interest. The ads now show only a few advertised for less than that.

With low vacancy, it shouldn't be too long before full asking price payers get 6% yields and the more skilled, getting 7%+, will have a return that covers interest. Indeed the Frankston thread demonstrates that it can occasionally happen now.

Peter
 
It just took 3 weeks to find a new tenant for one of ours, which is a long time for Rocky. Our PM reckons it was because the previous tenant had given 2 weeks notice, and was still there, which turns a lot of prospective tenants away. As soon as the tenants moved out, and the property was vacant, they were inundated with interested parties!

Our theory is that people want somewhere to rent - right now - none of this in two weeks time stuff! Maybe just a Central Queensland thing...

Bloss
 
Bloss said:
It just took 3 weeks to find a new tenant for one of ours, which is a long time for Rocky. Our PM reckons it was because the previous tenant had given 2 weeks notice, and was still there, which turns a lot of prospective tenants away. As soon as the tenants moved out, and the property was vacant, they were inundated with interested parties!

Our theory is that people want somewhere to rent - right now - none of this in two weeks time stuff! Maybe just a Central Queensland thing...

Bloss
Click to expand...

Good lord, she speak's.:D

Have'nt heard you on here for a while Bloss.

Now get back to work.;)

And Happy Birthday for tommorrow. XXXX

Dave
 
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