Posted to The Age (21/12/2011) on 22/12/2011 at 6:05 PM (Not published by Newspaper)
Commenting on "Housing shortage bites as supply fails to keep up"
http://theage.domain.com.au/real-estate-news/housing-shortage-bites-as-supply-fails-to-keep-up-20111221-1p55v.html
I cannot speak on behalf of other places, but my personal contacts reveal that the rental market for December in Melbourne has been the quietest in memory. According to one property manager, there was surge of 17% more properties listed for rent, and another told me that the telephone she had plenty of time to catch up with her paper and filing. These two areas are in different suburbs, at least 100 kilometre apart.
Although there are not many international students in these two suburbs mentioned above, this is real problem for many investors who own properties in CBD or near colleges, providing student accommodation. Those students who have completed their studies in December of 2011 have packed their bags, leaving the rented properties vacant. The once very profitable student accommodation industry is now officially dead.
The increased in number of properties for rental may also be due to increased number of previous tenants have purchased their own homes and move into new premises due the holiday season. There is another possibility that many new investment properties which offered rental guarantee are no longer in their honeymoon period, and these investment property owners now have to seek new tenants actively.
Under normal circumstances, December is busy for many estate agencies. Since very few internationally students come to Australia for next year enrolment, there is drastic drop in enquiries and demand for rental accommodation.
Another possible explanation is that interstate migration movement for job transfer is not happening, or speaking pessimistically job opportunity is dwindling in Victoria. If the underlying reason is about employment, people will feel insecure to move from job to another, leading to reduced tenancy movement.
Part 3 of 3
Commenting on "Housing shortage bites as supply fails to keep up"
http://theage.domain.com.au/real-estate-news/housing-shortage-bites-as-supply-fails-to-keep-up-20111221-1p55v.html
I cannot speak on behalf of other places, but my personal contacts reveal that the rental market for December in Melbourne has been the quietest in memory. According to one property manager, there was surge of 17% more properties listed for rent, and another told me that the telephone she had plenty of time to catch up with her paper and filing. These two areas are in different suburbs, at least 100 kilometre apart.
Although there are not many international students in these two suburbs mentioned above, this is real problem for many investors who own properties in CBD or near colleges, providing student accommodation. Those students who have completed their studies in December of 2011 have packed their bags, leaving the rented properties vacant. The once very profitable student accommodation industry is now officially dead.
The increased in number of properties for rental may also be due to increased number of previous tenants have purchased their own homes and move into new premises due the holiday season. There is another possibility that many new investment properties which offered rental guarantee are no longer in their honeymoon period, and these investment property owners now have to seek new tenants actively.
Under normal circumstances, December is busy for many estate agencies. Since very few internationally students come to Australia for next year enrolment, there is drastic drop in enquiries and demand for rental accommodation.
Another possible explanation is that interstate migration movement for job transfer is not happening, or speaking pessimistically job opportunity is dwindling in Victoria. If the underlying reason is about employment, people will feel insecure to move from job to another, leading to reduced tenancy movement.
Part 3 of 3
