September 2024 Newsletter
HEY NEIGHBOUR!
We’re delighted to welcome you to this latest edition of The Neighbourhood Property Collective newsletter, where we share essential insights, tips, and updates on the world of property leasing and the latest in local happenings.
AFL Results: Footy Fever Continues
Let’s start with the highlight of many weekends - AFL! Last week’s results were traumatic for all us Blues fans - we sat in disbelief watching Brisbane do what they wanted while we couldn’t even touch the ball.
We saw some incredible performances, (Not Carlton) with teams rising to the challenge and players giving it their all. Only 6 left now - my tip is Hawthorn or Geelong!
Residential Leasing Market: A Busy Time for Landlords and Tenants
Now, shifting gears to the world of real estate - particularly the leasing market, which has been bustling with activity but now showing signs of peaking. Over the past few months, the residential rental market has seen a significant shift, driven by changing tenant needs and evolving economic factors. The demand for quality rental properties continues to grow, but there is such a need for cheaper housing – one of our Mt Waverley properties had over 60 renters queuing at the OFI - with limited supply in some areas, competition is fierce among tenants.
For landlords, this can be a great time to list properties, especially if your property meets current renter demands—such as proximity to amenities, modern fittings, and sustainable features.
From the tenant's perspective, the search for a home can feel more challenging due to the high demand, but there are still great opportunities out there for those who stay informed and move quickly. Our team has been working closely with clients to help them secure rentals in a competitive market.
Our vacancy rate across the whole portfolio which covers a big portion of Melbourne is really low and has remained low for the past 18 months.
Residential Sales
Spring Auction launch is a bit slow, the REIV reported only 588 sales last weekend with 159 of them passed in, clearance rate at 73%.
Realestate.com reports are completely different – they reported a 58% Clearance rate across 1,058 Auctions, reported 431 sold with 308 passed in clearance rate of 58%.
Sales results are certainly slowing down – the market is a bit flat, Victoria / Melbourne is not winning at the present time.
Stay Connected
As always, we’re here to keep you informed and help you make the best decisions in the real estate market. If you have any questions about leasing your property or need assistance finding a rental, don’t hesitate to reach out. Our team is just a phone call or email away, and we’re always happy to chat about your property needs.
Thank you for being part of The Neighbourhood Property Collective community, and we look forward to assisting you in all your real estate endeavours.
Warm Regards
Carmela
MARKET INSIGHTS
We strive to stay up to date on the latest market trends. Here are a few articles we think are worth reading.
- Melbourne property: Spring selling season set to be a buyer’s market (theage.com.au)
Key takeaways from the article- Increase in Property Listings: Melbourne has seen a significant rise in new property listings, particularly in the inner suburbs, with a 74.2% increase in late August compared to the five-year average. This influx of listings is creating more opportunities for buyers.
- Softening Home Values: Home values in Melbourne have been declining, particularly in the inner-east and inner-south, where values dropped by 2.6% and 1.7%, respectively, in the three months to August. This trend is contributing to more favorable conditions for buyers.
- Buyers' Market Conditions: Due to the oversupply of homes and the softening of prices, this spring is expected to be a buyers’ market in Melbourne. Buyers have more negotiating power and can afford to be selective.
- Market Dynamics and Seller Expectations: While there are more properties on the market, homes priced fairly are still selling well. Sellers may need to adjust their price expectations as the market has balanced, and properties are not fetching the same premiums as they did two years ago.
- The Melbourne suburbs where property underquoting is rife (theage.com.au)
Key takeaways from the article- Permanent Underquoting Taskforce: The Victorian government has made the underquoting taskforce permanent to tackle ongoing issues of underquoting in real estate, focusing on problematic suburbs.
- Legal Action Against Agencies: Consumer Affairs Victoria has launched criminal proceedings against two real estate agencies, Propnex Melbourne and Cardamone Real Estate, for allegedly underquoting and failing to pay fines.
- Enforcement and Impact: The taskforce has monitored over 180 auctions, 1900 sales campaigns, and received more than 2800 complaints, resulting in $1.6 million in fines and over 320 official warnings.
- Regulation and Industry Response: The taskforce aims to enforce strict regulations on property price advertising. Despite criticism of the underquoting regulations, the taskforce has received significant support from within the real estate industry, with one-third of complaints coming from agents themselves.
- CoreLogic house price data shows home values still rising but growth is slowing (abc.net.au)
Key takeaways from the article- Rising House Prices: Australian house prices increased by 0.5% in August, marking the 19th consecutive month of growth. However, the pace of price increases is slowing, with uneven growth across the country—some cities experienced price rises, while others saw declines.
- Economic Impact on Housing Market: Despite high living costs and interest rates, house prices continue to rise, although at a slower rate. Future price trends are uncertain, but potential tax cuts, rate cuts, and decreasing inflation could impact the market.
- Melbourne Market and Rent Decline: Melbourne's real estate market is facing an ongoing downturn, with an oversupply of listings and declining house prices. For the first time, Perth and Adelaide have higher median dwelling values than Melbourne. Additionally, Melbourne rents have declined over the past two months, reflecting a broader trend of slowing rent growth across Australia.
- Slowing Rent Growth Nationwide: Rent growth across Australia has slowed significantly, with the national rent index remaining unchanged for two consecutive months. Factors such as a drop in net migration and an increase in household size contribute to this slowdown.
- Data on housing shows rental price increase slowing (abc.net.au) (VIDEO - 4 Mins 21 Seconds)
