The recent speculation on vacancy rates in the rental property market for 2012 indicates that the market is still strong in popular inner city suburbs. Suburbs such as Fitzroy and Abbotsford have proved to be robust while arrears such as St Kilda road, Southbank and some of the outer suburbs have felt the effects of over supply.
While the industry considers 3% as a fair market, Melbourne’s most recent figures show current vacancy rates of 4.4%. By comparison Western Australia had a rate of 1%, Sydney 2% and Canberra 1.1%.
Cranbourne and surrounding suburbs are also seeing an increase in stock levels as a result of a number of new estates being completed and the building of new homes in these areas nearing completion. These new homes are putting more pressure on the existing ones as tenants have more choice and now want more for their money.
“According to figures researched by Ray White Cranbourne there are approximately 200 homes available in the greater Cranbourne area. We are still letting good numbers of properties but landlord’s expectations must be realistic. Poorly presented properties and those asking too much just aren’t getting interest and are sitting around. Conversely those well priced and well-presented are getting multi applications and letting at the first open home in many cases. Four bedroom homes are still creating good interest in the marketplace” says Mark Guthrie Director at Ray White Cranbourne.