These are the Melbourne suburbs where rents fell the most

While property values showed resilience through the difficult Covid19 induced property cocoon of 2020, the rental markets in certain parts of Australia were hit quite hard.

Melbourne CBD apartments rents plummeted 27.3 per cent in the year to December, with the median unit rent dropping to $400 per week – the largest fall of any Melbourne suburb according to the latest Domain Rent Report.

Other inner-city suburbs, including Docklands, Southbank, Middle Park, West Melbourne, South Melbourne, East Melbourne, Carlton and Albert Park, also featured in the 10 suburbs with the biggest drops in apartment rents, with falls ranging from 22.4 per cent in Docklands to 11.6 per cent in Albert Park.

Domain senior research analyst Nicola Powell said areas which had “heightened levels of apartment supply” and a “greater proportion of rental demand sourced from overseas migrants or foreign students” were hardest hit by rent falls over the course of the past year.

“The international border closures have had a big impact on demand for rentals in these inner city areas and places like MacLeod, especially in places, such as the Docklands, that have had heightened levels of supply,” Dr Powell said.

The current conditions have given tenants in certain locations the chance to negotiate hundreds of dollars off asking rents.

At Metropole Property Management’s Melbourne office our proactive approach has minimised vacancies and rental reductions for our landlord clients.

In fact we have had a record last few months leasing properties for our clients.

Fortunately the Metropole team have always avoided recommending properties in the high-rise towers that have been the hardest hit, however even some of Melbourne’s inner suburbs have suffered.

A two-speed market

Remote working has also affected inner-city rent prices, as some residents relocate to middle ring and outer suburbs in search of more space, a trend that has driven up rent prices in some outer suburbs and regional areas according to Dr Powell.

While inner-city apartment rents are falling, some of Victoria’s favourite coastal towns have seen rents skyrocket over the past 12 months.

NOW READ: Is this the time to worry about falling rentals?

Now is the time to take action and set yourself up for the opportunities that will present themselves in property this year.

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from Property UpdateProperty Update https://propertyupdate.com.au/these-are-the-melbourne-suburbs-where-rents-fell-the-most/