2016 Boroondara rental market review
Solid returns and consistency typified the 2016 Boroondara rental market.
Boroondara remains one of Melbourne's most sought after areas in terms of housing. Renters are continually drawn to the neighbourhood because of its close proximity to the CBD, the many highly regarded local schools, the leafy, tree-lined streets and parks and the excellent public transport options. And for many, a buoyant local property market means buying in the area is simply beyond their reach.
"Throughout 2016 our property management team has experienced strong demand across all property types. The number of days a property has spent on the rental market at Jellis Craig Boroondara this year has varied depending on the time of year, but is currently around 19 days" says Sophie Lyon, General Manager, Jellis Craig Boroondara Property Management.
"Multiple applications for homes has been the norm as demand often outstrips supply. As always, homes zoned close to highly regarded schools are very quickly snapped up, as are well located and fairly priced single and two bedroom apartments."
The latest REIV figures highlight the solid market status. The current vacancy rate for Jellis Craig Boroondara is currently around 1.0 per cent, compared to inner Melbourne (4-10 kilometres from the city) at 2.1 per cent. This is unchanged from previous September figures. Metropolitan Melbourne's overall vacancy rate sits at 2.5 per cent. The median rental price for a three bedroom home in inner Melbourne is at $600 per week while a two bedroom apartment is $450 per week.
In Boroondara's suburbs, however, the figures are higher in many instances. In Kew for example, the median rent for a three bedroom home is $628 while in Camberwell it is $640. In nearby Hawthorn, the median rent sits at $700 per week.
"Heading into 2017 we are expecting the rental market to remain tight. Well presented properties will continue to rent out quickly, which is good news for investors," says Sophie. “The impact of the current construction of apartments in the Boroondara and City areas on supply and rent levels remains to be seen”
"We encourage our landlords to maintain their investment properties in excellent condition and to communicate with their property manager to ensure the property remains tenanted at, or above, market rent."
"Our property management team is looking forward to another positive year and we encourage anyone wishing to list their property to make contact. We already have a large database of high calibre potential tenants looking to lease from the beginning of 2017."