Rental returns grow
Ballarat up an average near 8 per cent
RENT for residential properties in the regions have shown strong growth over the last twelve months on the back of limited supply.
Numbers out from the Real Estate Institute of Victoria indicate a 7.9 per cent average increase for Ballarat between September 2018 and 2019, with the median weekly house rent going from $315 to $340.
REIV CEO Gil King said reasons for the rise were multifaceted with supply and demand issues set against ongoing law changes creating landlord uncertainty, and the growth of short terms accommodation providers.
“Recent rental law changes by the Victorian Government have led to rising concern and confusion for landlords, which is being felt across country Victoria,” he said. “As competition grows, it is becoming increasingly tougher for tenants to find a home.
“We have received reports of more and more owners turning to short term rental accommodation options like Airbnb to rent their rooms out.”
Across Victoria other key regional areas also saw median rental growth with Geelong up 6 per cent and Bendigo increasing by a more modest 3.2 per cent. The median rise across all of regional Victoria was 6.1 per cent for houses and 7.7 per cent for units.
In August rental vacancy rates remined tight across Victoria, with the statewide average at 1.5 per cent, the same level as Ballarat and the Central Highlands. The REIV considers a vacancy rate of 3 per cent healthy.
Mr King called for interventions that would create more rental stock.
“We need more incentives to convince investors to put their houses back on the market,” he said.
“The current housing market conditions are ideal for landlords, and owners are getting great returns on their investments, we encourage everyone to rent out their investment properties.”
“Property managers are being absolutely swamped by enquiries when they are advertising new homes for rent. Now is an ideal time to lease out your property, landlords are getting great rental returns and have access to a larger and more diverse pool of rental applications to choose from.”