Hi,
The last big auction weekend for the year resulted in 1,185 auctions being reported to Domain with 793 selling, 118 withdrawn and 274 passed in. The preliminary clearance rate is currently sitting at 67%. In comparison, the same weekend last year resulted in a clearance rate of 59%. There will be further auctions on the 6th and 13th of December and a handful of mid week auctions the week after before the industry closes down for the holiday period.
On the 25th of November, new rental property legislation took affect in Victoria which aims to improve property standards and increase tenants’ rights.
To breakdown some of these items:
- A property cannot be advertised until the property meets minimum standards, previously this could be completed whilst the tenant had moved in;
- Mandatory annual smoke alarm checks be conducted by licensed professionals;
- Ceiling insulation;
- External doors to have weather seals;
- Heating and cooling must be replaced with energy-efficient electric systems (eg. split system) when they cease working;
- Window coverings must have secure cords;
In addition to the minimum standards, there have been other changes some of which are:
- Ban rental bidding, so a landlord can no longer accept an offer higher than the advertised price;
- All notice to vacates must have a valid reason, eg. family/owner moving in, selling the property etc;
- Notice periods for notice to vacates and rent increases have been increased from 60 days to 90 days;
Whilst this legislation can lead to increased costs (mostly in the initial set-up stages), the updated minimum standards should also result in the property being safer and more pleasurable to live in and therefore (hopefully) reduce the turnover of tenants going in and out.
As there will be no option now for a landlord to accept a higher rent for a property than what was advertised, we may see some landlords initially ask for a higher rental price and then drop the price until a tenant is found.
Have a great week
Kim Easterbrook – Managing Director
