It is pleasing to see bigger numbers of prospective tenants turning up at our inspections over the last few months, which is great news for our landlords.
We have not seen such high tenant enquiry across our properties since the market began to fall nearly two years ago now. The Saturday open house attendance rates across Wyndham and Hobson Bay Shires have doubled in the last two months, while Melton, Maribyrnong , Brimbank and others have increased by 30-40%.
So where has the increased tenant enquiry come from?
The most obvious reason stems from a significant reduction in new investment property being built over the last 18 months. In fact, this reduction tallies around the 65% mark, and has enabled the demand of tenants to start slowly catching the supply of properties. If the trend continues we would hope to see the flat and falling rental prices stabilise and slowly increase $5-10 next year.
Prospective tenants continue to be a strong mix of newer Australians (particularly Indian, New Zealand and south eastern Asia), especially in the <$300 per week market. Our tenant application approval rate remains steady with 1 in every 5 tenant applications meeting our strict screening criteria.
Properties without air-conditioning and/or heating continue to face greater vacancy risks due to Melbourne’s fluctuating weather patterns and given the increasing time people spend in their home, this trend will no doubt continue.
In summary, the inner west Melbourne market is flat while the outer west suburbs are flat but signalling towards a slight recovery.