Professionals Armidale 
Professionals Armidale property management team had a successful month of May, leasing a total of 40 properties. Throughout the month, our vacancy rate remained impressively low, fluctuating between 1% and 1.8%. The average rent achieved was $380 per week, up from $375 per week in April.
Tenants showed a preference for units and more affordable houses, while more expensive properties “circa $500 per week and above” posed more challenges to finding tenants. This is a sign of the financial pressure consumers are feeling and as a result, are trying to reduce living expenses. We are seeing tenants of good quality, who were willing to pay $500 – $550 per week in rent just 12 months ago, are now actively searching for properties priced 10% – 20% less.
“Our property management philosophy is simple –
to minimise arrears, vacancies, and expenses, and to maximise your return”
According to ANZ Senior Economist Felicity Emmett, as of April 2023, national rental vacancy rates stood at 1.1%, which is below the decade average of 3%. An increase in regional migration during the pandemic led to increased rent values and low vacancy rates in both regional Australia as well as major cities. Interestingly, since March 2020, rent values increased more across regional markets at 28.8%, compared to 24.4% in capital cities.
The latest data released by CoreLogic indicates that Australian housing values, after falling -9.1% between May 2022 and February 2023, look to have bottomed out and have now posted a second consecutive monthly rise. The last time we saw housing values trending higher through a rising interest rate environment was during the mid-to-late 2000s when the mining boom was underway. This period was also characterised by surging net overseas migration that contributed significantly to housing demand and an ongoing lack of housing supply. We are experiencing the same cycle under similar conditions again two decades later.
Professional Armidale Landlords Newsletter – May 2023
By Jamie Williams
Director
Head, Property Management / Investment Specialist
Professionals Armidale
M: 0481 173 322
P: 02 6772 4549
