Rental Update

Despite the low numbers of rental properties available at present, Abercromby’s has had success in leasing a large number of houses over the last month. In addition, new apartments are leasing quickly and at pleasing rents. The rental market, whilst still coming to terms with and adjusting to the shifting demographics caused by the pandemic, is somewhat geographically unpredictable. When will the next shutdown be? Where should I live in such times? When will expats and internationals return?

In the city though, there continues to be an over-supply of apartments. The somewhat frosty recent communications between our own government and that of The People’s Republic of China would suggest that overseas students won’t be returning in the foreseeable future, meaning and the inner-city apartment rental market will continue to be slow and prices low. Why can’t we all just get along? That said, there might be hope on this front. Only yesterday The Age reported Xi Jinping, detecting the West’s displeasure, had sent a message to his diplomats to use a more accommodating and agreeable approach. We will see. Perhaps the recent frustrations between our two nations will subside. We hope so.

Meanwhile, with the continuing historically low interest rates, there are good opportunities to purchase investment properties, as there is a trend for rental providers to sell at present. Abercromby’s can foresee a potential shortfall of rental properties in the suburbs over the next few years, which could result in a rise of rental income for those rental providers.