wow...Melbourne CBD rental market

[jerrybee]

About 6 months ago we tried to rent out our place. Many weeks went by and not a single application. Barely anyone even turned up to the inspections.

I just assumed it was the much publicised oversupply of apartments.

Today we put up a rental ad for a very high price ($420 a week for a one bedder, no garage) and we get 3 applications, with two of them desperately wanting a confirmation asap because they really wanted it, and the third one being very keen also but knowing they would probably lose as they couldn't move in for a month.

The apartment wasn't renovated in this time. In fact I think it's in even worse condition due to the last tenants.

I asked the agent if I should be surprised and she said no, because demand picks up across the board over summer.

I'm really shocked what a difference in the time of the year makes.

 

[Deltaberry]

Yes but generally, vacancies will remain high, and your return will be abysmal due to various fees and old hands being able to undercut you easily.

 

[marg4000]

I asked the agent if I should be surprised and she said no, because demand picks up across the board over summer.

I'm really shocked what a difference in the time of the year makes.

Not at all surprising. Uni has just started in most places and you will get a lot of students looking for a place to live nearby. Even if you are not targeting students, they will take up a lot of vacancies.

Always keep seasonal demand in mind when negotiating the lease, sometimes a 10 month or 11 month may work better than a 12 month. Similarly, properties with pools are much more in demand in summer than in winter.
Marg

 

[bumskins]

Today we put up a rental ad for a very high price ($420 a week for a one bedder, no garage) and we get 3 applications, with two of them desperately wanting a confirmation asap because they really wanted it, and the third one being very keen also but knowing they would probably lose as they couldn't move in for a month.

The apartment wasn't renovated in this time. In fact I think it's in even worse condition due to the last tenants.

I asked the agent if I should be surprised and she said no, because demand picks up across the board over summer.

I'm really shocked what a difference in the time of the year makes.

How many triple bunk beds could you fit in there?

In all seriousness could be just advertising at a good time. e.g. no developments have recently finished.

 

[The Y-man]

Jerry, you've done well!

Our northern edge CBD 1Br near Mel Uni vacant for 3+ weeks!!

The Y-man

 

[jerrybee]

Jerry, you've done well!

Our northern edge CBD 1Br near Mel Uni vacant for 3+ weeks!!

The Y-man

Thanks! Is yours targeted towards students? Mine is in the legal district. I wonder if that makes a difference? I told the agent I'll accept almost anyone except for students but she said don't worry they wouldn't be interested in a) heritage buildings and b) being that far away from Uni anyway. All three applicants were older working professionals I think.

How much is yours advertised for?

 

[The Y-man]

Thanks! Is yours targeted towards students? Mine is in the legal district. I wonder if that makes a difference? I told the agent I'll accept almost anyone except for students but she said don't worry they wouldn't be interested in a) heritage buildings and b) being that far away from Uni anyway. All three applicants were older working professionals I think.

How much is yours advertised for?

Nah - just a "non-specialiased" ordinary 1BR

In the mid-3's I think (hmm.... shows u I'm really in touch...)

The Y-man

 

[Beau Lyon]

Melbourne CBD apartment rental market is too seasonal because of the uni. A lot of the yuppie renters are now renting in docklands as that's where the good jobs are relocating. Each newdevelopment in Docklands is offset by even more jobs being created by a bank etc relocating there, but at the same time the old cbd office closes down. The good thing is that the commercial developemnts in docklands are precommited by large companies wanting a custome- build office, so jobs are always increasing there, and the resi developers here wait for more commercial to be build before starting each new resi developemnt so the demand will be there.
Also there is a lot of undeveloped land left in the commercial strip compared to the residential strip of docklands so oversupply in this part is unlikely.
I have off the plan apartments here that are not advertised on domain, realestate etc, pm or call me (0433870227) if you are interested.

 

[Peter_Tersteeg]

6 months ago was August, no an ideal time to have a vacancy, I've run into problems with a property near Melbourne Uni at this time of the year.

January and February are the best times to be advertising for a tenant. We try to time our leases for this period and usually get a flood of applications.

 

[The Y-man]

Leased now!

The Y-man

 

[jerrybee]

Leased now!

The Y-man

Good stuff, congrats. Did you find yourself having to flex at all? I've seen a lot of people lower prices, furnish the place etc.

 

[Nigel Kibel]

Melbourne cbd market

Yes it is seasonal however with around 4000 apartments coming out of the group I would try and get my money out of the deal. I believe that cbd and dockland values will fall and with the expected over supply we will see rents fall and vacancies rise,

 

[The Y-man]

Good stuff, congrats. Did you find yourself having to flex at all? I've seen a lot of people lower prices, furnish the place etc.

Had to drop 10pw from last tenant....

The Y-man