A Vacant Investment Property And Falling Rent
Don’t risk a guess. In 2021 experience counts.
Property Managers across Melbourne were relieved and also in shock as December rolled around and did its usual thing, COVID had shaken the rental market in the inner city with high vacancies.
Melbourne rental demand was compounded by a second wave of restrictions through the September quarter, and an abnormally high next loss of people from Melbourne through the June quarter.
Property Managers across Melbourne were seeing very low enquiry rates, from April – September which led to lots of work for minimal return.
Then December 1 hit us, it went from zero to one hundred. You could feel the relief in the air with some normalcy, leasing properties and huge increase in inspections.
You could actually feel Christmas coming, which was a welcomed relief.
Meanwhile, median unit rents in Melbourne have fallen to $400 per week, down from a pre-COVID high of $450.
Most of the impact of the pandemic was felt in unit, as rents decreased by -7.0 per cent, December didn’t really help the rents recover however did see tenants signing leases and some of the property saturation slowly decreasing.
Rental demand will be further boosted across Melbourne when international travel is once again feasible, though this may not be for some time.
It was a tough year for many investors, however with a fresh new outlook in 2021 and lower vacancy rates all we can do is hope this surge continues for the first quarter as it normally would. We loved transferring the first rents to our landlords in December, some that had not seen rental income for months, just in time for Christmas.
With a new year, lets all cross our fingers that the positivity continues.