Over the past two years, headlines have spotlighted steep rent increases across Australia. However, on the ground, a shift is beginning to take shape. In our local rental markets, such as Narre Warren, Berwick and Pakenham, signs of stabilisation are now emerging, with rental prices levelling out and increases becoming far more moderate than media reports suggest.
According to CoreLogic’s June Market Update, Sydney and Melbourne are now among the softest rental markets in the country following a period of extreme growth. A combination of affordability constraints and a normalising rate of overseas migration appears to be driving this new trend.
Locally, we’ve observed a noticeable cooling in renter demand. At First National Neilson Partners, we're seeing fewer applications submitted per rental property, and there's a growing variation in tenant quality, particularly regarding rental history and affordability. Renters are becoming more selective, and many are approaching the upper limits of what they’re willing, or able, to pay.
Why This Matters for Investors
Understanding and responding to these subtle but important market changes is essential for rental providers and landlords. By actively managing supply and demand through:
- Strategic pricing
- Well-timed marketing campaigns
- Proactive lease renewals
we can help reduce the risk of prolonged vacancies. With vacancy rates rising across Victoria, staying ahead of the curve is more important than ever.
Our Commitment to You
At First National Real Estate Neilson Partners, we’re committed to ensuring your investment performs at its best, no matter how the market shifts.
We’ll continue monitoring rental trends closely and adjusting our strategies to keep your property competitive, well-marketed, and consistently leased.
Learn about the Neilson Partners difference HERE.
We put you first.
