Rental Market Update Sept-Oct

Rental Market Update September - October 2023 Review

Our purpose To create a place where we can facilitate our people’s growth.

Our values

Family.

Mutuality.

Realising potential.

Our colleagues are our broader family, assist when needed and when in need.

Respect our colleagues and our clients as you would like to be respected.

Unlock your full potential, encourage and support your colleagues.

Embrace change.

Health and energy.

Strive for excellence; be open minded and willing to embrace change.

Work towards being well balanced within yourself.

October report

From our corporate director Dean O’Brien

According to a recent report by the government agency NHFIC, there's an anticipated shortfall of 175,000 homes by 2027. To address this, the industry has taken an innovative approach. A study by CoreLogic, in collaboration with Archistar and Blackfort, has pinpointed 230,000 potential sites in Melbourne suitable for granny flats. This solution presents both an accessible and rapid option to address the housing deficiency. The report highlighted Mornington Peninsula as the top locality for such developments with 23,870 sites. Following closely are the City of Casey, Monash, Knox, and Manningham with 16,861, 13,960, 13,741, and 13,063 potential sites respectively.

For prospective buyers, Melbourne stands out. As per CoreLogic's October figures, home values rose by a modest 0.5%, the least among the major five capital cities. However, a broader view reveals that Melbourne's growth over the past year is only 2.4%, as opposed to Adelaide's 6.5%, Brisbane's 7.8%, Sydney's 9.0%, and Perth's 10.8%. In the regional Victoria market, there's a silver lining as home value dips seem to be plateauing, with a slight 0.1% hike in the last month.

Melbourne witnessed a bustling auction scene in October.

2023 has so far favored auctions over private sales, as indicated by the latest REIV research. For sellers aspiring for optimal outcomes, it's prime time to consider auctions. The season remains vibrant, expected to last until 23rd December.

Anticipation is brewing as the Reserve Bank's decision looms on Melbourne Cup Day. Homeowners are gearing up for a potential rate hike, echoed by forecasts from all major banks.

However, as with weather predictions, it's always prudent to be prepared—so keep that umbrella at hand during the Melbourne Cup. A favorable interest rate decision by the US Federal Reserve on Thursday might send some positive vibes Australia's way.

The property investment realm seems steady, with minor rental price hikes in October. After 36 months of back-to-back increases, the market momentum seems to have normalized.

The ABS's October data reveals a 7% surge in building approvals, the first in a long while. However, approvals are still lagging by 22.9% based on year-on-year figures.

The property investment realm seems steady, with minor rental price hikes in October. After 36 months of back-toback increases, the market momentum seems to have normalized. The ABS's October data reveals a 7% surge in building approvals, the first in a long while. However, approvals are still lagging by 22.9% based on year-onyear figures.

Thank You Dean O’Brien Director & Co Founder

Australia now has the lowest number of homes to rent since 2012

Renters have been delivered more bad news with new data showing that the number of homes available to rent is at its lowest since 2012.

Over the four weeks to October 1 rental listings nationally fell to just 90,153, a rental shortfall of approximately 47,500 according to CoreLogic Quarterly Rental Review.

She pointed to overall cost of living rises as a contributing factor to rental rises moderating.

"With the rising cost of living adding additional pressure on renter's balance sheets, it is likely tenants have hit an affordability ceiling, seeking to grow their households to share the growing rental burden."

Sydney remains the most expensive capital city to rent in with median dwelling rent at $726 per week.

This is followed by Canberra ($649p/w) and Darwin ($615p/w).

Adelaide ($548p/w) lost the most affordable rental capital title to Hobart ($529 p/w), with Adelaide recording a quarterly rental rise equivalent to $9 p/w while Hobart rents fell -$15 p/w.

There is now a rental shortfall of approximately 47,500 homes according to CoreLogic Quarterly Rental Review.

"Record high net overseas migration, fuelled by a combination of an increased flow of new arrivals and weaker departure numbers, coupled with a continued shortfall in rental listings, saw the vacancy rates falling to new record lows across both the combined capitals and combined regional markets," CoreLogic Economist and report author Kaytlin Ezzy said.

Rental vacancies stood at just 1 per cent in the combined capitals while combined regionals market the vacancy rate came in at 1.2 per cent.

Despite the low vacancy rate however rental values, the pace of rental growth was down for the September quarter.

Nationally rental values rose 1.6 per cent over the quarter, down from the 2.2per cent rise seen in the June quarter and a full percentage point below the recent peak rate recorded over the three months to April of 2.6 per cent.

Meanwhile the report also revealed the most expensive and cheapest places to rent in Australia's capital cities.

In Sydney the most expensive suburbs were overwhelmingly in the city's eastern suburbs with the highest rent coming out for houses in harbourside Vaucluse, which have a median weekly rent of $2588.

Of the most expensive suburbs in Sydney to rent, houses in South Coogee had the biggest hike over the September quarter with a rise of 7.4 per cent, taking the price to $1,752.

The cheapest places to rent in Sydney were overwhelmingly units in the city's south-west and outer west with the cheapest option a unit in Carramar, which has a median rent of $389.

In Melbourne, renting a house in Brighton is the most expensive option with the median rent on such a property coming in at $1361 weekly.

At the other end of the scale a unit in Melton South is the cheapest rental option in the Victorian capital with the median rent at $345.

CoreLogic Economist and report author Kaytlin Ezzysaid there were a number of factors at play driving the slowdown in rental growth amid such limited rental availability.

"Worsening affordability continues to be a significant factor placing downward pressure on the pace of rental growth in recent months," Ms Ezzy said.

"After recording a small dip over the first few months of COVID, national rents have risen for 38 consecutive months, taking rental values 30.4 per cent higher since July 2020 and adding the equivalent of $137 to the median weekly rent, said Ms Ezzy.

article source : view.com.au

Do you have an investment property?

Transfer management to us ... it's easy.

Step 1:

Step 2:

Step 3:

Assessment Simply call and speak to our experienced Growth Specialist who will review and assess, collecting some information to commence the hand over process.

Authorise At this stage, we will gather all required documentation authorising our team to take over the file and begin an in depth analysis of your property.

OBrien Real Estate hand over We take it from here, managing contacts, assessments, and file transfers. We'll also liaise with your tenant for inspections or introductions.

Josh Barbut 0439 782 898 Property Management Growth Specialist

Rental review 41

88

Rental providers/ property owners have chosen us

Properties leased

$544

12

Average median rent per week

Average days on market

7,982

2,953

Renter enquiries

Renter applications received

117,679

9,121

Property views

360 degree tour viewed

224

0.58%

Leasing inspections conducted

Vacancy rate

We lease more.

A snapshot of last months leases.

Address

Suburb

Price

Price

per week

per month

3/3 Wallace Avenue

Bayswater

2

1

1

$420

$1,825

5/241 Soldiers Road

Beaconsfield

4

3

2

$580

$2,520

5 Slingsby Avenue

Beaconsfield

4

1

4

$550

$2,389

343A Centre Road

Berwick

4

3

2

$585

$2,541

28 Stefan Drive

Berwick

3

2

2

$530

$2,302

32 Chirnside Road

Berwick

4

2

2

$530

$2,302

1/13 Maryn Close

Berwick

3

1

1

$430

$1,868

1 Adelaide Close

Berwick

3

2

2

$570

$2,476

4/17B Hazeldene Court

Berwick

4

3

2

$560

$2,433

40 Caravan Parade

Berwick

4

2

2

$710

$3,084

5 Sunview Place

Berwick

5

3

2

$785

$3,410

17 Bangalay Place

Berwick

3

2

2

$520

$2,259

58 Grices Road

Berwick

4

2

2

$560

$2,433

8 Sarah-Louise Place

Berwick

4

2

2

$525

$2,281

14 Theodore Terrace

Berwick

2

1

1

$420

$1,825

7 Kalastaire Grove

Berwick

4

2

2

$550

$2,389

5 Sunview Place

Berwick

5

3

2

$785

$3,410

33 Travertine Loop

Berwick

2

2

1

$480

$2,085

Unit 2/26 Albrecht Avenue

Berwick

2

1

1

$430

$1,868

38 Strathavan Drive

Berwick

3

2

2

$530

$2,302

16 Cimbrone Place

Berwick

4

2

2

$600

$2,607

Unit 3/53 Elgin Street

Berwick

3

2

2

$550

$2,389

3 Ladd Way

Berwick

4

2

2

$570

$2,476

7 The Gateway

Berwick

2

1

1

$425

$1,846

114 Mansfield Street

Berwick

4

2

2

$560

$2,433

17 Pioneer Court

Berwick

3

1

1

$460

$1,998

1 Ember Street

Clyde

4

5

2

$750

$3,258

14 Keskadale Drive

Clyde

4

2

2

$560

$2,433

47 Creekside Street

Clyde

3

2

2

$495

$2,150

September - October 2023 Review

We lease more.

A snapshot of last months leases.

Price

Price

per week

per month

2

$535

$2,324

2

2

$550

$2,389

4

2

2

$480

$2,085

Clyde North

4

2

2

$570

$2,476

8 Trainers Way

Clyde North

3

2

1

$460

$1,998

84 Burnbank Parade

Clyde North

4

3

2

$650

$2,824

4 Catfish Street

Clyde North

3

2

2

$480

$2,085

7/40 Hudson Street

Coburg

2

1

1

$425

$1,846

63 Jamieson Street

Corinella

4

2

2

$450

$1,955

4 Alexander Circuit

Craigieburn

3

2

1

$450

$1,955

39 Camms Road

Cranbourne

3

1

2

$490

$2,129

8 Valerie Drive

Cranbourne

3

1

2

$470

$2,042

Unit 2/17 Russell Street

Cranbourne

3

3

1

$460

$1,998

4 Pepperbush Circuit

Cranbourne

4

2

2

$590

$2,563

33 Villager Street

Cranbourne East

2

1

1

$430

$1,868

24 Criterion Way

Cranbourne East

3

2

2

$550

$2,389

52 Criterion Way

Cranbourne East

3

2

2

$485

$2,107

18 Amburla Drive

Cranbourne North

4

2

2

$500

$2,172

5 Abrus Circuit

Cranbourne North

4

2

4

$530

$2,302

22 Olivebank Crescent

Cranbourne North

4

2

2

$540

$2,346

1 Arapiles Street

Cranbourne North

4

2

2

$600

$2,607

115 Courtenay Avenue

Cranbourne North

4

2

2

$550

$2,389

9 Rowen Court

Cranbourne North

3

1

2

$480

$2,085

9 Aldous Place

Cranbourne North

3

2

2

$500

$2,172

49 Abrus Circuit

Cranbourne North

3

2

1

$495

$2,150

20 Jasa Crescent

Cranbourne West

4

2

2

$550

$2,389

Unit 704/80 Cheltenham Road

Dandenong

1

1

1

$330

$1,434

1/315 Stud Road

Dandenong North

2

1

2

$400

$1,738

8 Olive Road

Devon Meadows

6

2

3

$1,250

$5,430

Address

Suburb

10 Canyon Avenue

Clyde

3

2

10 Mabillon Way

Clyde North

4

26 Broadbank Crescent

Clyde North

4 Emery Drive

September - October 2023 Review

We lease more.

A snapshot of last months leases.

Address

Suburb

Price

Price

per week

per month

Unit 7/6 Byron Street

Elwood

1

1

1

$400

$1,738

21 Shetland Street

Endeavour Hills

3

1

4

$550

$2,389

9 Mossgiel Park Drive

Endeavour Hills

3

1

2

$430

$1,868

7/164 Napier Street

Essendon

2

1

1

$450

$1,955

Unit 3/256 Cranbourne Road

Frankston

3

1

1

$420

$1,825

64 Armata Crescent

Frankston North

4

2

2

$590

$2,563

9 Bower Vine Road

Junction Village

4

2

2

$600

$2,607

33 James Street

Lang Lang

3

1

2

$450

$1,955

Unit 2/15 Glen Orme Avenue

McKinnon

3

1

1

$680

$2,954

Unit 4/40 Collins Street

Mentone

2

1

1

$600

$2,607

97 Darling Way

Narre Warren

3

1

0

$470

$2,042

1/105 Springfield Drive

Narre Warren

3

2

2

$490

$2,129

8 Murdoch Avenue

Narre Warren

3

2

2

$560

$2,433

25 Amber Crescent

Narre Warren

4

2

2

$600

$2,607

57 Gledhill Street

Narre Warren South

3

2

2

$500

$2,172

105 Robinswood Parade

Narre Warren South

4

2

2

$620

$2,693

211 Ormond Road

Narre Warren South

3

1

2

$480

$2,085

82 Robinswood Parade

Narre Warren South

4

2

2

$600

$2,607

17 Highland Crescent

Narre Warren South

4

2

2

$550

$2,389

13 Parish Court

Narre Warren South

5

2

0

$720

$3,128

Unit 2/13 Joy Parade

Noble Park

2

1

2

$310

$1,347

6 Barratt Court

Noble Park

4

2

5

$605

$2,628

22 Cherrington Avenue

Officer

3

2

2

$490

$2,129

82 Dodson Road

Officer

4

2

1

$520

$2,259

49 Bluehills Blvd

Pakenham

4

2

2

$470

$2,042

Unit 6/1 Village Way

Pakenham

3

1

1

$420

$1,825

18 Macleod Circuit

Pakenham

3

2

2

$470

$2,042

5 Sandpiper Close

Pakenham

4

2

2

$550

$2,389

12 Elderberry Way

Pakenham

3

2

2

$450

$1,955

6 Gorham Street

Pakenham

3

2

2

$480

$2,085

70 Queens Road

Pearcedale

4

2

4

$1,490

$6,473

September - October 2023 Review

5 reasons why OBrien

Reason #1

Reason #2

Access to more renters.

Experience, integrity and knowledge.

Inter-office promotion and selling increasing your property’s exposure. Latest prospective renter database.

Local area specialists, highly skilled and trained property managers across all offices.

Reason #3

Faster leasing time.

Our low days on market can translate into marketing savings. Less time on market ensures you receive the best possible price.

Reason #4

Reason #5

Constant improvement.

Specialised marketing.

All property managers receive specialist industry training and have regular meetings.

Professional photography and lease boards, utilising Australia’s premier real estate websites.

Josh Barbut 0439 782 898 Property Management Growth Specialist

Our property management team

Currently for lease

Berwick

Berwick 9707 0556 56-58 High Street, Berwick berwick@obre.com.au

Cranbourne

Cranbourne 5995 0500 Cranbourne Park Shopping Centre FS005/125 S Gippsland Hwy, Cranbourne cranbourne@obre.com.au

Narre Warren

Narre Warren 8794 0500 Suite 3, Ground Floor/58 Victor Crescent, Narre Warren narrewarren@obre.com.au

Rental Market Update

Our network 40 offices and growing

Melton

Sydenham Preston / Reservoir Ringwood Blackburn Vermont Wantirna

Deer Park Corporate

Oakleigh

Brighton

Werribee

Croydon

Tecoma / Belgrave / Olinda

Endeavour Hills Mentone Narre Warren Keysborough

Berwick

Chelsea Carrum Downs

Pake n h am

Cranbourne Langwar r i n Frankston

Mornington Somerville

Torquay

Hastings

Rye

Cowes

San Remo

Northern Victoria

Eastern Victoria

Wodonga Wangaratta Alexandra

Far North Queensland

Wonthaggi

Bairnsdale Drouin Warragul Cairns & Beaches

The quality of our service stems from the importance we place on the people behind our network. obre.com.au