Elevated rental prices and tight supply are likely to continue favouring landlords and investors in many Melbourne suburbs and regional Victoria. In areas serviced by Barry Plant offices, investors who have held onto their properties have been rewarded with quality tenants, strong rental returns, and capital growth. While the market stabilised in the second half of the year, many regions are still experiencing strong rental demand, leading to shorter days on the market for listings.

Market observers and property managers have described the rental market as tight in most areas, resulting in stiffer competition and higher rents. Proptrack figures showed that only 1.42 percent of rental properties were available in June. While rental vacancies may have improved slightly, renters are still facing high prices and limited supply in many markets.

A combination of landlords exiting the market, a lack of new construction, and increased demand from migration has further constrained rental supply.

An REA Group report in August noted that, across the nation, rental houses spend an average of 21 days on the market, and units 19 days. In Noble Park North, houses are leased much faster, with the median days on market dropping 45 percent in a year to just 16 days.

The days on market for houses in Niddrie also fell sharply, by 41 percent to 22 days. In the unit market, three Melbourne suburbs recorded significant decreases in rental days on market. Mont Albert North units were rented out in 15 days, 53 percent faster than a year earlier, while units in Melton were leased 48 percent faster, and those in Deer Park nearly 40 percent quicker at 18 and 15 days, respectively.

In Noble Park North, there were only six rental listings recently, and three of these were managed by Barry Plant Noble Park, according to the agency’s Business Development Manager, Casee Heath. “There is a lack of supply because this well-positioned suburb is mainly owner-occupied, and the rental turnaround is very fast,” she said. “It’s a sought-after area, close to good schools and freeway access. Rents increased significantly but have now stabilised.” She estimated that rents rose by $50 to $100 per week at the peak.
"We are still seeing a decent number of enquiries, and there are still houses available to rent, but they are snapped up quickly,” Ms Heath added.

Investors can expect strong rental returns and capital gains from properties in Noble Park North. A two-bedroom unit can fetch $450 a week, while three-bedroom houses are leasing for over $600.

The small suburb is family-friendly, with many owner-occupiers and spacious blocks. Ms Heath added that the market in another area serviced by the agency, Dandenong North, is similar, with tight supply and only two rental listings at one point. In Mont Albert North, where units are renting quickly, there were only 16 units available in September, with 537 renters showing interest, according to realestate.com.au. Only 53 units were leased over a 12-month period in this eastern suburb.

With strong renter demand and low vacancy rates, the current market is ideal for both existing investors and those looking to enter the market. As always, the best property decisions are made by considering your individual circumstances and goals. If you’re seeking advice to achieve your property objectives, the Barry Plant team is here to provide expert guidance every step of the way.