As 2018 draws to a close, we are reflecting on the year that was. 2018 has seen the rental market throughout Melbourne remain at a high with low vacancy rates as well as increases or stability throughout the suburbs median rent.
2018 included the approval through State Government for the changes to the rental legislation, which will come into effect by June 2020 – for more information on this please click here.
The vacancy rate throughout Metro Melbourne has remained around 2% on average. This is with the multitude of new developments which have come on the market, there is still high demand throughout Melbourne.
We have also seen an average growth of $5 in median rents each quarter and some more stability throughout. This shows us that, in conjunction with the vacancy rates that demand it up and rents are still rising.
At this stage, there is uncertainty within the market for 2019. The biggest change to investors may come at the national election early in the year. This is due to the proposal from Labour that capital gains tax will be cut and removing negative gearing. This could mean that there are more investment properties being offloaded. Therefore, creating an oversupply on the sales side and an undersupply for rentals. For a handy breakdown of this – click here.
For us, this year ends our first year of operation within Melbourne. After gaining great strides this year we look forward to growing further into next year and beyond. As a company, we were fortunate enough to take out both Large Property Management Company and BDM Team of the Year from the 2018 LPMA Awards.
It has been a year of fantastic growth and improvements throughout all of our offices. We thank you all for being a part of it.
From all of us at Image – we wish you a lovely holiday period and a very prosperous 2019!