Methven 
For August’s edition of our monthly market report we are joined by Tracey Russell, the head of our property management division.
The vacancy rate is great at the moment with the average in Melbourne at 2.9%, in the outer East at 1.6%, and we are sitting on .5% – way below the Melbourne average. We attribute this to the high demand for properties to let and the low supply, so properties are going very quickly – often with only one open and getting very good applications. There is high demand for 4 bedroom homes to let at the moment, which tend to get very good enquiry, and the prices we have been achieving for them have risen significantly compared to 6 months ago. 2 bedroom homes are also getting good prices and have also risen significantly in the same time period. For those on a lower budget, basic 2 bedroom homes are going for around $280 per week at the moment.
Tracey offers some advice for tenants which is all the more important in this tough market. Prospective tenants should make sure to get to the first open for a property as soon as they see it advertised as there may not be a second open. Applications should be made and the relevant documentation presented as soon as possible. Tenants should also use covering letters – introductory letters that help let owners know more about you and your current situation that may not have been covered on the application. The two most important things that a landlord wants to be assured of is that the property will be looked after and that the rent will be paid on time.
The sales market continues to be strong and in August, the Mooroolbark office alone received 597 buyer inquiries, and the company as a whole received well over 1000. There are still plenty of buyers and the biggest challenge has been the reduction in properties becoming available on the market. Supply is currently not meeting demand and so prices are still on the rise. Coming into Spring, we expect the market to heat up.
We would like to congratulate our managing director Geoff Earney, who was recently inducted into the Professionals international Hall of Fame in Queenstown, New Zealand. Only one person per year is inducted into the hall of fame.
We’d also like to mention the exciting times that are ahead for our property management department. We have secured the shop next door and this will enable the future growth of the department.
