The new year’s rental market has rushed out of the blocks, with a massive quantity of new tenant enquiry to our office in our first fortnight. This isn’t unusual for January but the speed of the return will give some nervous landlords a little more confidence. Rents are likely to continue growing while new supply of apartments is slow (and in most cases, non-existent).
One change that is noticeable is the lower interest from companies for staff accommodation. Have a good chat to many inner city property managers and they’ll admit to the strength of corporate letting in recent years. Many of the mining services and resources organisations drove demand to our apartments in much the same way they kicked the local commercial office market along. And now that party’s near last drinks. There’s still plenty of demand from them, but not the flurry we saw in 2007-2008 especially. Fully-furnished executive apartments are likely to be less sought-after.
Amongst all this landlords and tenants will have a new Act to comply with from July 1st. New laws on rent increases, the sale of rental property and rights to enter are all on their way. We’re planning an information seminar in May and will pass on details as soon as they’re confirmed.