More relaxed living: Regional Victoria’s rising rents,
Rents in several popular regional towns in Victoria have surged over the past year. This rise is primarily driven by affordability.
The appealing lifestyle and job opportunities have also contributed to this trend. The latest Rent Report from Domain highlights significant rent increases.
Notably, the Macedon Ranges recorded a remarkable 13.2 percent increase in median asking rents. Similarly, Shepparton experienced an 11.9 percent rise.
Mildura and Mansfield saw rents climb by 10 percent, while Murrindindi’s increase was 9.8 percent. Dr. Nicola Powell, Domain’s chief of research, explains this trend.
She noted that affordability constraints heavily influence renters when searching for homes. Although house rents remained stable, unit rents exhibited upward momentum.
In fact, units appear to be in higher demand due to affordability issues. Across regional Victoria, median asking rents for houses were steady at $470 weekly.
However, unit rents increased by $5, reaching $370 per week. Additionally, a shift in population dynamics has contributed to rent increases.
For the first time since September 2021, Victoria saw positive net migration. Powell emphasized the significance of this change for the rental market.
Population dynamics are returning to normal trends in Victoria, leading to a likely growth in rental demand and prices.
Furthermore, the exodus of landlords in various local government areas is impacting rent prices. This trend is expected to continue in the coming months.
The shortage of rental properties is driven by investors exiting the market. Concerns about land tax increases and potential rental regulation changes exacerbate this situation.
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Terry Rawnsley, KPMG’s director of planning and infrastructure economics, highlighted that strong regional economies significantly influence rental demand.
He noted that regions like Mildura and Shepparton have robust local economies. This growth is expected to benefit agricultural production, attracting many supporting workers.
Additionally, Rawnsley emphasized that affordability drives rental demand in areas close to Melbourne. For example, the Macedon Ranges corridor appeals to those priced out of the city.
People are increasingly searching for more space and affordable options further away. Jane Vella, senior property manager at Jellis Craig Central Victoria, echoed this competitive rental market sentiment.
She mentioned that demand for rentals is rising, particularly due to proximity to Melbourne. Many individuals seek a relaxed, semi-rural lifestyle while still having city access.
Moreover, a limited supply of rental properties has increased rental prices. After the lockdown, many applicants moved away from Melbourne, driving this demand.
Vella pointed out that demand far exceeds supply, especially for well-maintained properties. In desirable locations with land, it’s common to receive multiple applications quickly.
The Macedon Ranges is attracting a diverse mix of renters, including families and professionals. Additionally, interest is coming from other regional areas and even interstate renters.
Cities like Sydney are also generating interest in this region. The appeal of the Macedon Ranges lies in its proximity to Melbourne and lifestyle benefits.
Access to nature, good schools, and a strong community enhance its attractiveness. This area blends rural charm with modern conveniences, making it ideal for those escaping urban density.
Ryan O’Connor, managing director of Shepparton Real Estate, noted that job opportunities are attracting renters to the greater Shepparton area.
He observed that there aren’t many applicants from Melbourne, but international movers are applying for jobs here.
These individuals are seeking employment in hospitals, factories, and farms within the region. Consequently, this influx is creating a competitive rental market.
O’Connor mentioned that any rental property priced under $450 garners significant interest from potential renters.
Currently, they average between 30 to 40 rental applications for each property listed.
For instance, they recently had a two-bedroom unit that received 22 inspections and 60 applications in just one week.
