Record low vacancy rates have continued to tighten over the last three months as surging immigration levels create unprecedented demand in the market. In the last 12 months Melbourne has seen further falls in available rentals, with the Miles vacancy down to under 0.7 per cent as of December 2023.
Despite a sharp increase in rental yields, up 16 per cent* in the year to June 2023, our team have achieved our best-ever arrears rate at under 1 per cent for the entire year. A remarkable effort from our Property Management department considering we manage a portfolio over 2500 properties.
This year our team have received over 14,000 enquiries, held 2132 open for inspections, processed more than 3000 applications and leased 777 properties. The average days-on-market is 12, demonstrating the ongoing strength of the rental market in Melbourne’s north-east.
Building and construction has failed to keep up with the current demand for residential housing and despite the state governments pledge to build an additional 800,000 homes in Melbourne over the next 10 years, it is unclear how this target is going to be met at the present rate of construction. The ABS recorded 59,000 new dwellings completed in Victoria in the year to March 2023.
So, what are the implications for investors? Yields will continue to grow due to the current market forces, as the population increases and the demand for rental homes remains high. Capital growth forecasts are also positive, with property values continuing to rise - and as we have observed over the last 15 months, performed above expectations in the face of further interest rate hikes. Our advice to investors is that they will be wise to hang on to their assets in the short to medium term.
Top leases
1. 14 Thoresby Grove, Ivanhoe a three bedroom solid brick period home located close to Eaglemont Village was leased at $890 per week and on the market for just eight days.
2. 5 Powlett Street, Heidelberg another solid brick three bedroom home within walking distance to Burgundy Street was leased at $860 and was also on market for only eight days.
Why a quality property management service is crucial.
Not enlisting a high performing property management team could cost you. By engaging Miles as your Property Management experts you not only get first-class customer service - you also ensure the protection of your valuable asset through the proactive management of maintenance and repairs. This includes preventative initiatives which will save you from costly restorations or repairs in the future, underpinning the value of your investment and enhancing the overall performance of your property in the market.
Please get in touch with us should you wish to discuss any aspect of your property or seek an up-to-date rental appraisal.
