The latest housing data from SQM research has shown a big fall in vacant properties in January. This lack of supply is driving rents up as shown with Melbourne’s vacancy rate falling substantially from 2.5% to 2.0%. A change in the vacancy rate creates conditions for competition for properties from tenants along with more investors purchasing investment properties in the first quarter of 2017.
Whilst local building in Casey and Cardinia is increasing with local supply of land growing, rents are still jumping sharply. The median rent has climbed to $400 per week for Berwick and $350 per week for Pakenham.
We are still seeing 3 to 5 people per open home and there remains strong investor interest in properties as they hit the market.
A jump in supply is expected during 2017 and 2018 as more land becomes available in Officer and Clyde North, with record approvals flowing onto completions over the next two years.
With house prices remaining high renting remains in favour providing an opportunity for tenants to live in an area they prefer at a cheaper price than buying a house.