December Rental Market
We are deep in to the summer moving season for tenants. This makes the team very busy, and that will continue immediately after the short Christmas break. Tenant demand is good for quality properties, particularly above $500 per week: good homes are leasing relatively quickly. There clearly are numbers of folk who definitely, or probably, are in a position to buy, but are choosing to rent and wait for more choice and/or better prices. Rents are holding in this market.
At the lower price end of the market we are continuing to see unexpectedly high vacancy and weaker tenant demand. This is the market sector where traditionally we have seen almost zero vacancies across 400 to 500 tenancies all year round, and sometimes people totally desperate and willing to take almost any roof over their head. Not any more. This is hard to fully explain: but, some young people have moved back home; others are choosing to share; and some have probably left town in search of a lower cost of living. It will be interesting to see how this plays out in the busy January and February period. Rents are holding for now, but with the increased and uncharacteristic vacancy, we may see some gentle downwards pressure for new tenancies.
Commercial activity has remained very strong right up to Christmas. There seems to be a deep well of demand for retail opportunities in particular. There is however weaker demand for small office spaces. The outstanding CIPS team has maintained their market position through hard work and the value of their extraordinary knowledge and expertise.
December Sales Market
Highlands Property had an outstanding sales result in December. However, this comes after a long quiet period, and it is unlikely to be an indicator of a turn for the better in the market generally. The buyers continue to set the tone in the market: and they are very cautious, and often finance constrained. Every transaction involves an uncommonly large amount of work for our two excellent sales executives: this is a market situation where their years and years of experience really counts.
Our office will close from 5pm on Monday 24th December 2018 and re-open at 8.30am on Wed 2nd January 2019.
We wish you safe and happy holidays!
2018 highlights by the numbers
As 2018 comes to an end we look back at what a great year it has been at Highlands Property.
- Residential portfolio leases signed: 339
- Commercial properties leased: 208
- Properties sold: 51
- In excess of 4,000 property inspections
- Winning Real Estate Agency of the Year, and Geoff winning Business Person of the Year
- Our community involvement included: raising over $3,500 for WIRES, including hosting a charity sausage sizzle at Bunnings; donations to the Black Dog Institute, we participated to Buy a Bale for our farmers; and we continued our year round support of Dignity.
We’d like to thank all our valued clients for your trust and support this year! We wish you a happy Christmas season and a prosperous 2019.
The Highlands Property and CIPS Team