29 May 12
by Perry Beebe
Hi and welcome to the May edition of Perry’s rental update
After a number of years of continuing increases in rent, this year has definitely started softly. Last year we saw rent increases greater than 10 % in some cases. This year has been mixed. While vacancy rates have stayed around the 1% mark, some properties have seen less demand than we experienced over the previous 2 years. This has led to softer rents and longer vacancy periods.
There may be a number of contributing factors.
- The continued high dollar does make studying in Australia less attractive for overseas students. There is also the university’s purchase of the IBIS hotel which has provided housing for around 150 students. Hence reducing the demand for other accommodation across the region even for non student accommodation
- The staff reduction at BlueScope steel last year has led to a number of new rental properties on the market as their owners head to other parts of Australia or overseas for work
While none of these impacts are huge, the combined impact has led to a softer rental market.
While we won’t see the large rent increase of last year in the immediate future, low vacancy rates will remain and this will keep pressure on rents.
Last year we say significant changes to the tenancy legislation. With the new law, landlord to tenant notice to vacate periods increased significantly but this was balanced with the promise that the tribunal would no longer take the tenant’s circumstances into account when hearing a case. I am pleased to say that the tribunal are definitely following the letter of the law. As a landlord you can now be certain that you will be able to obtain vacant possession of your property should you require it.
Well that’s it for another edition Perry’s Rental Update.
Perry is the Managing Director of All Residential Real Estate.
All Residential Real Estate is a boutique agency passionate about providing very high levels of customer service. We believe that property sales and management is about you. It's about how you feel when you sell your property or have a property managed through an agent. At All Residential Real Estate, you have very experienced professionals who take pride in everything they do.
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