You have likely seen recent headlines in papers about a softening rental market, with increased supply, falling rents, longer vacancies, and a shift favouring tenants. While the market was indeed challenging over the winter months, I believe many online reports are lagging by about 4-6 weeks.
In contrast, September showed a stronger interest in inquiries, leading to more viewings and faster rental turnovers with minimised vacancies. We are not entirely out of the woods yet, but our daily market observations suggest the situation is not as bleak as often portrayed.
Here are some key cold facts and signs of improvement based on our observations and reports:
-Total CBD listings: Dropped from 680 to 610.
-Average time on market: Reduced by 6.4 days to 22 days approximately.
-Rent decrease: A slight drop of less than 5% on average.
-Overseas tenant interest: We are seeing good quality tenants from overseas requesting videos or online viewings, primarily from China, India, and European countries.
-Vacancy rate: Decreased from 1.97% to 1.04% (September 1 vs. October 1).
As mentioned previously, well-maintained properties tend to rent much faster than others. Internal condition often plays a more significant role than elevation, views, sunny aspects, or even location in some cases.
While it is still early to declare a full market recovery, September delivered positive numbers, and I am hopeful this trend continues through Christmas.