The Melbourne rental market continues to be challenged by low housing stock and Renters are facing high competition to secure properties, leading to a significant increase in weekly rents.
In Banyule, the low availability of rental properties has led to fewer renters relocating, preferring to stay put rather than enter the competitive market. This trend has contributed to an average rental increase of $65 per week, pushing the average weekly rent for a home to $5601 in Melbourne. This represents a substantial 13 per cent increase over the past year, with strong market conditions and continued demand.
Miles Outperforms Melbourne Averages
- Arrears and Vacancy Rates: Both remain exceptionally low, well under 1 per cent, demonstrating that most renters are consistently meeting their obligations and properties are quickly filled. The Melbourne vacancy rate is currently 2.1 per cent.
- Average Days on Market: The average time a property remains on the market is 16 days, underscoring the high demand and efficient turnover in the rental properties.
Results in Numbers Q1
- Properties Leased: We have leased 185 properties.
- Open for Inspections: Hosted 546 open houses.
- Rental Applications: Received over 1200 applications, highlighting the competitive nature of the current market.
- Enquiries: Fielded over 1500 enquiries, showing high renter interest and activity.
Highlighted Rentals
- Our team leased 424 Lower Heidelberg Road, Eaglemont and A501/111 Parkview Road, Alphington at $800 per week, while 12 McCrae Road, Rosanna leased at $750 per week, showing strong rental yields in desirable locations.
Outlook for Investors
Despite land tax increases there are still great incentives for investors to stay in the market as the vacancy rate will remain low for many years to come. House prices have risen 2 per cent in 2024 are forecasted to make more significant gains in the next 2-3 years. Rental yields will continue to grow amid high competition for rental properties.
Investors should stay informed as this high-demand market is the key to maximising returns. As always, our team is here to provide expert guidance and support in navigating the Melbourne rental market and give you with peace-of-mind knowing your valuable asset is being managed by our high performing team.
Sources. 1 realestate.com.au
