Rising interest rates and falling auction clearance rates are indicators that the sales market is cooling. We are seeing the same level of this in the rental market, with a fractional decline. We asked Senior Property Manager, Joscelyn Lambert, to provide a market update specifically for tenants, particularly those saving to purchase their own home in the future.
“We are still seeing a high demand for rental properties, particularly in the East Maitland and Hunter region where I am based. To put it in perspective, in May we received over 3842 rental applications and leased 123 properties across our three offices. It is not uncommon to get at least 30 applications per property, with many prospective tenants having viewed the virtual inspection before applying. I think it is interesting to note we are seeing a very high percentage of tenants applying with pets, particularly young families,” explains Joscelyn.
“In May I leased a 3-bedroom home in East Maitland and approximately 80% of the applications included pets. Many included a pet resume, which is a really nice touch as well.
High demand for rental properties contributes to higher rents, and we are seeing on average at least a 10% increase in rental prices. A 4-bedroom home in Aberglasslyn for example would be leased for around $220 per week in the early 2000s, but today could be priced at up to $600 per week.
Coming off the back of such a strong sales market, and the rising value of properties in the region means this will likely remain the case for the foreseeable future.
The market today compared to when I first started in Real Estate is totally different; the pace of the market is faster, the rents that are being achieved are much higher and the pool of tenants applying for properties is much larger. This does make it a very interesting space for those looking to enter the market in the future and my one piece of advice on this would be to be ready, know your limits in terms of price and look at your options – look outside the square.”
If you are considering purchasing your first investment property or rentvesting our friendly Property Investment Services experts can deliver independent, specialist advice giving you complete confidence every step of the way. You can get in touch with them here.
Key Takeaways
- The property market is cooling off, with rising interest rates and falling auction clearance rates.
- High demand for rental properties persists, especially in the East Maitland and Hunter region.
- Rental applications remain high, with significant competition for available properties.
- Pet-friendly rentals are increasingly popular, with many applications including pet resumes.
- Rental prices have risen, with an average increase of at least 10%.
- The market dynamics today are notably different from the past, with faster pace, higher rents, and a larger pool of tenants.
