After what was a sluggish winter rental market, we have started to see some positive movement since mid August with increased demand and shorter supply of residential rental stock. This was not entirely unexpected; however was the most subdued winter market that we have seen in the last 4 years.
Currently we are experiencing vacancy rates of 1.0% to 1.5% as opposed to the 2.0% levels of winter 2009
Certainly highest demand has been in the one bedroom market to $400/pw and the two bedroom apartment range to $550/pw. A few higher level, + $1000/pw properties are still seeing the effects of recent economic downturn, as executive transfers to Sydney have reduced and demand remains subdued. I feel we may need to wait a bit longer to see the top end of the rental market improve in line with the general market.
We are still recommending to our clients to put quality tenants on 12 month leases and maintain rents at existing levels for now. The prospect of further rent increases are likely to occur from March 2010 onwards.
Until next time, take care.
