What's The Rental Market Doing?
It has been an interesting first quarter for 2019. There’s been a lot of noise in the property market as to what’s going to happen, however, we can only talk about the facts.
In February 2019, we saw vacancy rates in Inner Melbourne (4-10KM) sit around 2.2%, up from the 1.8% reported in February 2018 on average according to the REIV, yet, our office is seeing a vacancy rate of 0.25%*.
There are 3 main factors that we believe to be contributing to our successful leasing campaigns:
- Our leasing process begins with an off-market phase, presenting properties to our list of qualified tenants in advance to secure them before the property is even ready for leasing.
20 Bidey Street, Prahran is a great example of this. We held 3 private inspections for 3 qualified tenants looking for properties within our portfolio before the property was ready to be launched, and secured a fantastic tenant within 24 hours. This result meant minimal vacancy time for the owner, and the retention of a great tenant within hockingstuart.
- Utilising the same quality level of marketing as our sales team to present properties to a higher standard during the campaign. What we are seeing is that as we improve tenant engagement with our properties, we capture the best tenants, at a premium price, with the lowest vacancy.
- Our established team of property managers brings a wealth of experience, knowledge and longevity to our clients. Thus when we look at presenting solutions to our clients, they know they have been tried and tested with decades of experience.
Out of the last 10 new properties we have brought under management, 2 have been leased off-market, 7 after the first inspection, 1 after the second inspection, and 7 of those above the asking price.
If the above isn’t enough, the average rental price in Stonnington is up from $531 per week in February of 2018, to $552 per week in February of 2019*.
We truly do believe, the noise is just noise.
Next month, we'll be talking about the changes to the residential tenancies act and Labour’s Negative Gearing Policy.
Business Development Manager
0429 207 831
*The data provided in this article has been sourced from the REIV.