Dear Fellow Property Investors,
Inner-city Melbourne renters have been slugged with the biggest rent increases in the city, with asking rents climbing as much as 45 percent in some suburbs.
Experts say rents are rising at an alarming rate, while inner-city tenants say the prospect of paying more money to their landlords than they can afford keeps them up at night.
Units had the biggest spike by far – rents soared by 45 percent in Melbourne’s CBD over the past 12 months to a median $580 a week, 33.8 percent in West Melbourne, and 31.4 percent in Carlton, Domain data shows.
Asking rents for houses grew strongly, too. They were up most in Hughesdale at 23.5 percent to a median $618, followed by Werribee South at 23.1 percent and St Kilda West at 21.9 percent.
Rents increased by at least 10 percent in more than half of unit markets across Melbourne and in more than a third of house markets.
Domain head of research and insights Dr Nicola Powell said there was a clear trend towards rents increasing in inner Melbourne.
“When you drill down to that suburb level, all those areas with the strongest rental growth are in inner urban areas and inner-city locations,” she said. “What’s really interesting is that the trend is very strong in Melbourne.
“The areas that have seen the greatest increase in rents are those inner-city areas that are dominated by units.”
Powell said rents were rising faster in the inner city because of a reversal of the pandemic trend of tenants fleeing the CBD and the swift return of international students.
Despite some small relief in the vacancy rate – which rose from 0.8 per cent to 1 per cent – Powell said renters would still find navigating the market difficult.
“What we’ve got now though is vacancy rates have increased marginally,” she said. “But despite the vacancy rate nudging a bit higher, it showcases it’s still very much a landlord’s market, and it’s still challenging to tenants.
Let me ask you something…
Do you have a game plan for 2023?
Or will you watch savvy, educated, market-ready investors snap up all the bargains at the bottom of the Melbourne property cycle (which in my opinion by the way has already bottomed out in November 2022),
Or will you join them?
So, what are you waiting for?
Reserve your place and join me and 55 like-minded property investors at the next Real Estate Investing Fast Track Weekend!
Click HERE to reserve your seat now!