Phillip Webb Real Estate’s rental vacancy rate is currently sitting at 0.7 per cent – a sign of an extremely tight rental market in Melbourne. And it’s not just Melbourne who is experiencing a rental shortage. The rental affordability crisis is currently being felt Australia-wide, with high demand and low supply seeing many Australians struggling to find a home within their preferred price range.
The rental and sales markets will often influence one another – when the sales market starts to soften, which it is currently, the rental market starts to pick up and become a little bit stronger. It is a really interesting time in real estate where this crossover between the sales and rental markets is very apparent.
So, what’s causing the sales market to soften?
Interest rate increases have made a lot of people nervous over the last few months, meaning those ‘transitional’ renters are holding back from making any large purchases. This includes first home buyers, who typically rent until they have saved up enough money to buy a house. However, with every rate increase, these buyers are having to adjust expectations, realising they may be in a position to spend less and less on a property.
With demand at an all-time high, we are starting to see Melbourne’s rental apartment market bounce back. Philip Webb Real Estate recently secured the Certificate of Occupancy on a Box Hill apartment complex. In just one week, we leased 22 of the 36 apartments, a sign that demand for apartment living is on the incline.
If you are struggling to find a rental property or would like further guidance on how to successfully secure a lease in a competitive market, call our office today!