We’re seeing some interesting moves in the rental market at the moment. With good job and affordable lifestyle opportunities, and just two hours from Sydney, Newcastle and Lake Macquarie are becoming increasingly desirable areas to live.

This is all good as it means we’re seeing an influx of people coming to the area, and these people need somewhere to live.

Low interest rates combined with significant rezoning across the city and a new light railway under construction has also seen an influx of investors purchasing all types of property.

And it’s not just local investors. With Sydney becoming increasingly expensive, investors there are also eyeing up Newcastle.

So what else is happening in the market?

Vacancy rates

Good news for investors – the rental market continues to be strong. Although the vacancy rate hit a high of 4.6 per cent in April 2015, the most recent figures from the Real Estate Institute of NSW show it sitting at 2.3 per cent in October.

Generally we’ve been seeing a vacancy rate across Newcastle (ie the amount of rental properties unoccupied at a particular time) of between 2 and 3 per cent over the past few months. This rate is seen as normal and being a balanced market for investors and tenants alike.

Rental prices

Contrary to what’s being experienced in housing prices, rent increases are generally staying steady or are seeing a small increment increases only. Since the beginning of 2015, Housing NSW figures obtained by the Newcastle Herald show, the median rental price for a detached home in the local government area has climbed just five per cent, from $400 to $420 per week.

Again, this is positive as it means the option of renting is affordable for most people and there is something there for everyone’s budget.

Vacancy times

While vacancy times (ie the time a property is empty between paying tenants) have increased, at Newcastle Property Management we take great pride in delivering vacancy times well below these rates.

This is because we have a database of over 3000 registered tenants, so owners who use us to rent out their property have the added bonus of their property been marketed extensively to a ready database, as well as through other means.

Plus we know what makes a good rental property and will advise on improvements to give our landlords the edge over other similar listed properties.

If you want to know what the rental market is doing, we’ll be releasing our very detailed 2017 Market Review in January. This includes a snapshot of the rental market for both houses and units in individual suburbs, so register now to receive it or contact the office to request a copy.

We’ve helped hundreds of people realise their financial dreams through property investment and we’d love to help you too! Either drop into the Cardiff office, call 02 4956 9777 or send us an email to mail@newcastlepropertymanagement.com.au and our experienced and knowledgeable team will answer your queries.

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