We’ve recently observed a quieter market for apartment rentals in the CBD.
Over the past six weeks, listings have surged from just over 400 to 760, resulting in an oversupply of properties, hence a decrease in weekly rents.
Concurrently, there has been a decline in interest from prospective tenants, evidenced by fewer bookings, viewings and inquiries. Furthermore, tenants now display an increased confidence in negotiating weekly rents.
Moreover, the average rental period has extended from 16 to 23 days, and there has been a noticeable increase in tenants breaking their fixed-term leases – largely due to financial constraints or tenants returning home overseas. In response, some landlords have transitioned their short-term accommodations to medium or long-term leases to adapt to the current market conditions.
Amidst these market shifts, we are excited about the recent development of the RTA Amendment Bill 2024, which has successfully passed its First Reading. This legislative milestone presents various opportunities for landlords, including the reintroduction of 90-day ‘no cause’ terminations for periodic tenancies, amendments to Section 60A, and reinstating 42-day notices for owner reclamation and property sales.
Anticipated to be enacted by early next year, these changes are poised to eliminate barriers to rental supply. They aim to stimulate participation in the private rental market, thereby empowering landlords with the confidence to engage proactively.
Rest assured, our dedicated team is committed to minimising vacancies between your tenancies. We are equally dedicated to securing your ongoing success in these dynamic times and stand prepared to adapt to these promising changes.
Please do not hesitate to contact us with any inquiries regarding market trends or legislative developments.