Spring Market Update
In a normal year, spring marks the beginning of the busiest time of the year for property management, and this year is no exception. However, due to the pandemic, the conditions of this year’s property market are somewhat different.
As Melbourne’s restrictions are eased, business as usual is beginning to resume in the property rental market. In a normal year, spring marks the beginning of the busiest time of the year for property management, and this year is no exception. However, due to the pandemic, the conditions of this year’s property market are somewhat different.
‘This year, our base level of property is higher than usual, particularly in the apartment category which usually lease pretty readily,’ says Marshall White leasing manager Felicity Edwards. ‘This is partly because the international student market has diminished due to travel restrictions, and many young people have moved back home.’
There are sections of the rental market that have not been affected, or that have recovered quickly. ‘Properties such as townhouses and smaller homes, which we anticipated would be affected by the loss of the international corporate market, have found tenants locally,’ says Felicity.
Family homes and other high end properties remain very popular and are easily being leased, particularly within a considerable pool of tenants who have been economically unaffected by the pandemic and are able to pay rent at usual rates.
Some trends within the property market have sustained throughout this uncertain period. ‘A well located, well maintained, well presented and internally updated property of any type is always desirable,’ Felicity says.
New trends have also emerged during this time, because the way that we use our homes has changed dramatically. As a large part of the Melbourne workforce has transitioned to working from home for the foreseeable future, prospective tenants are particularly interested in properties with home office spaces or studies. ‘Many tenants have upsized to larger homes so that they can use the extra space for their home office,’ says Felicity.
As restrictions surrounding inspecting and leasing properties become more relaxed, tenants in general are returning to the market. ‘As soon as we could conduct property inspections again, the volume we leased significantly rose, and we expect that as restrictions continue to ease, we’ll keep seeing increases in leasing,’ Felicity explains.
The usual reasons that people move homes have also persisted throughout the last few months, meaning that tenants were still finding properties through our team even during the harshest period of lockdown. ‘Even during the COVID-19 market, people were still selling homes and needing to rent before they buy again, or changing jobs, or moving in with their partners,’ Felicity explains.
Heading into the summer months, we’re observing the usual uptick in interest in Bayside properties and homes with pools or close proximity to water. Unlike in other years, we anticipate being busy right up until Christmas and beyond, as tenants who were unwilling to move during lockdown relocate. ‘We’re all feeling positive about moving forward,’ says Felicity. ‘We’ve adapted to the changes and we’re looking forward to coming out of restrictions into the new year.’
If you have any queries regarding property management or leasing, please contact the Marshall White Property Management Team who will be happy to assist. For more information contact us on (03) 9822 8711.
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