In Focus

Boroondara rental market update for Quarter 1 2024

Boroondara Blog PM0424
Steven Abbott

Steven Abbott - Managing Director & Auctioneer

April 2024

A tight rental market continues to play out nationally and across Victoria. According to PropTrak data released in February, the average time a Victorian home spends on the rental market has reduced by two weeks compared to 2021.

PropTrack data also shows that the national rental vacancy rate declined to 1.07% in February, with levels of available rental homes falling 60% since March 2020. Despite these figures, Domain data suggests rental demand may be easing overall, with views of online rental listings declining 14% in February.

CoreLogic reports that gross rental yields in Melbourne have risen to 3.57% (up from 2.26% two years ago) . Median weekly rents in Melbourne rose by 10% in 2023 according to data from the Real Estate Institute of Victoria (REIV). In Boroondara, the median weekly rent for houses rose by 6.9% while for units it was up 18.2%. In Kew East, the median house rent jumped 30.3% while in Balwyn North the median unit rent rose by 30.6%. Other Boroondara suburbs that experienced above average rises in rents last year include Hawthorn East (house rents up 21.4%) and Kew (house rents up 21.3%, unit rents up 19.6%).

These figures underscore high demand for quality rental properties across Boroondara. Properties are letting quickly, particularly those in the $600 - $1,500 per week bracket.

“Property investors have started to return to the market, perhaps seeing value and opportunity, perhaps buoyed by the shift in income returns and stability in interest rates,” says Jellis Craig Boroondara Managing Director, Steven Abbott.

“Rents for one- and two-bedroom apartments have risen significantly, while rents for family and executive homes are poised to rise. The combination of those selling in the mid to upper markets and looking to rent while contemplating or making their next move, along with a lack of new development in recent years, are key factors influencing supply and therefore rental pricing.”

Across our portfolio, rental properties took just 20 days on average to let in March, at an average rent of more than $2,722 per month Boroondara remains a very popular locality for renters thanks to its proximity to the CBD, excellent transport links and amenities. The major redevelopment of the Kew Recreation Centre that’s currently underway, will further enhance the leisure, health and wellbeing facilities on the doorstep for local residents .

At Jellis Craig Boroondara, our experienced property management team strives to deliver seamless and rewarding rental experiences for both renters and rental providers. We are proud to manage almost a quarter of all Boroondara rental properties. In March, our team achieved an impressive 5-star rating on reviews, demonstrating our commitment to premium client service and results.

For an up-to-date rental appraisal of your property in the current market, or for any other rental property management enquiry, please call 9810 5000 or email [email protected]

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