A headline in the AFR caught my eye yesterday. It read – “Rental markets post fastest growth in 14 years”. Wait…What?
For owners and agents of Melbourne apartments, this headline feels like a world away from what we have seen over the last 12 months so naturally I read on.
The story is about a core logic study of residential rents across Australia for houses and apartments showing Darwin, Hobart and Perth with 6% – 8% growth and most other cities enjoying 2% – 3% growth in the first quarter of 2021. While Melbourne apartments had 0% growth in the first 3 months of 2021, it is a significant improvement on the -8.2% fall for the preceding 12 months.
While 0% growth doesn’t feel like a great statistic it shows the decline in Melbourne apartment rental values have stopped and we can hopefully start to see some upward pressure on apartment rental growth soon and maybe ahead of international travel and students returning.
Education is Victoria’s No. 1 export service and our rental market will be boosted if the Federal government takes up Victoria’s proposal to fly in international students from 24th May. To date, the Federal Education Minister Alan Trudge remains “very cautions” but there is a big push to get international students back into the country.
The proposal is for a relatively small number of students initially but it could increase if the program is proven to be successful and safe.