If you’ve seen some of the recent reports on the correction to the property rental market due to the impact of the coronavirus, you won’t be surprised to know that a lot of property investors are losing sleep at the moment.
The latest monthly report on the rental market from SQM Research indicates that there has been a huge increase in rental vacancy rates in many of the popular rental markets in the CBD. This change has been driven by a combination of widespread employment losses, the inability of international students to travel to Australia, and the increased supply of apartments that are now being offered for long term lease due to the collapse of the short term accommodation market, such as Airbnb.
Data from SQM Research suggests that the April 2020 vacancy rate in Melbourne’s CBD was 7.6 percent. This compares with 5.0 percent in March, and just 2.3 percent in April 2019. Yes, this suggests that there are almost three times as many vacant rental properties in Melbourne as there were just one year ago. In fact, their figures indicate that the vacancy rate may be as high as 13% in areas like Southbank. Other areas in Melbourne’s suburbs have performed more favourably, although rises in vacancy rates have been recorded for most areas around the nation.
As we mentioned in our April Market Update, despite the challenges of the current market there are definitely still opportunities out there for a well-informed investor. However, with many of these properties only being offered ‘off-market’, the value of having an experienced Advocate by your side has never been more apparent. Not only will they give you access to many of these opportunities that you might never hear about otherwise, but they can also assist you in selecting the right property that will best meet your long term goals.
No matter whether you are looking to take advantage of the current market to purchase a rental property at a discount, or making decisions on what to do with an existing rental property, the right advice can make a huge difference to your investment.
So if you are looking for the right kind of guidance in an increasingly complicated property market, be sure to call the team at Ian Reid Buyer Advocates on 9430 0000, or go straight to the Ian Reid Buyer Advocates website.