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An apartment at 3002/61 Haig Street, Southbank, is sitting vacant on the rental market, asking $370 per week.

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The number of empty rental homes across Melbourne has almost doubled in the past year, with the tenant exodus hitting Southbank, Docklands and the CBD hardest.

Experts have identified the trio as “danger zones” buyers should steer clear of at all costs — but on the flip side, tenants moving in could just about “name their price”.

Propertyology head of research Simon Pressley said Melbourne’s inner-city apartment market had “grossly underperformed” for several years now.

And the COVID-19 crisis has made the sector even more hazardous by heightening pre-existing oversupply issues.

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Mr Pressley found 20,891 rental homes citywide lay vacant at the end of August, equating to a 3.4 per cent vacancy rate. This was up from 11,830 a year prior.

Southbank’s vacancy rate skyrocketed from 4.3 per cent to 16.6 per cent in the same period, while Dockland’s rose from 3.8 per cent to 16.1 per cent, and the CBD’s, from 2.6 per cent to 8 per cent.

Mr Pressley said employment loss in hard-hit sectors like hospitality and tourism, and the absence of international students and migrants due to border closures, had caused an inner-city tenant exodus.

“It’s sad for the tenants who have lost their jobs and had to move out (and) for the landlords who … have to try and service mortgages without rental income,” he said.

“It will be sad when these people have no choice other than to sell already poorly performing assets.”

1112/55 Merchant Street is one of many Docklands apartments sitting vacant. Its weekly asking rent has been slashed from $520 to $390.

Propertyology found a typical apartment in Southbank, Parkville and South Yarra had gained less than 1 per cent in value each year of the past decade, while Docklands units had declined 0.2 per cent.

Vacancy rates had also risen annually in South Yarra (from 2.4 per cent to 6.2 per cent), St Kilda (2.1 per cent to 4.9 per cent), Box Hill (3 per cent to 5.4 per cent), Prahran (2.2 per cent to 4.8 per cent) and Parkville (2.7 per cent to 4.5 per cent).

The figure is calculated by comparing how many rental listings have been advertised online with the total number of established rental properties in a region.

Propertyology head of research Simon Pressley said Melbourne’s inner-city rental market was a sad state of affairs.

Mr Pressley said a small silver lining was vacancy rates appeared to have remained steady outside Melbourne’s inner ring — but the city’s extended lockdown could change that.

“When the coronavirus first hit, we expected a spike in inner-city vacancy rates. It was a case of whether individual landlords had enough cash flow to get though a six-week national lockdown,” he said.

“But this is a much harder and longer lockdown.”

Continued rental price falls and landlords abandoning the market altogether were likely outcomes, he said.

Property investors are being advised to steer clear of the CBD, Docklands and Southbank. Picture: David Caird

RiskWise Property Research has also identified the CBD and Docklands among the nation’s top 10 “danger zone” markets, with chief executive Doron Pereg urging investors to be particularly cautious of buying off-the-plan apartments in the coronavirus environment.

He warned of the likelihood of further unit price declines, which could create problems at settlement, and cash flow issues, with the pandemic drastically reducing the tenant pool for inner-city Melbourne properties.

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samantha.landy@news.com.au

Melbourne vacancy rates

Southbank: 16.6% (up annually from 4.3%)

Docklands: 16.1% (3.8%)

Melbourne CBD: 8% (2.6%)

South Yarra: 6.2% (2.4%)

St Kilda: 4.9% (2.1%)

Box Hill: 5.4% (3%)

Prahran: 4.8% (2.2%)

Parkville: 4.5% (2.7%)

Port Melbourne: 4.2% (2.1%)

Richmond: 3.5% (1.9%)

Kensington: 2.5% (1.2%)

—-

Greater Melbourne: 3.4% (2%)

Source: Propertyology, comparing August 2020 to August 2019

The post Coronavirus Melbourne tenant exodus amplifies inner-city danger zones appeared first on realestate.com.au.

Apartment landlords within inner Sydney may have begun to gradually attract tenants again after slashing rents.

Figures from SQM Research showed the proportion of rental homes sitting vacant in the CBD dropped from a high of 16.2 per cent in May to 12.9 per cent in August.

The change in vacancies coincided with a plunge in rents – the average asking rent for units in the CBD over August was about 23 per cent lower than a year prior.

There were also about 700 fewer vacant properties across the Greater Sydney area in August compared to July, with the vacancy rate dropping from 3.6 per cent to 3.5 per cent. The vacancy rate was the highest among capital, despite the drop.

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Separate research from the Real Estate Institute of NSW showed vacancies across the Greater Sydney area decreased for the first time in five months.

Newcastle and Wollongong also had a slight easing of vacancies in August, as did many other regional NSW areas.

The Sydney CBD has the highest level of vacancies.

REINSW chief executive Tim McKibbin said landlords may have staved off vacancies by offering more enticing deals.

“Easing of vacancy rates across much of NSW may be attributable to landlords responding to the changed market conditions brought on by the COVID-19 pandemic,” Mr McKibbin said.

“With so many people experiencing job losses or reduced pay, many tenants have had to relinquish properties and go in search of more affordable options. Landlords faced with vacant properties are now, in turn, reducing weekly rents to entice tenants.”

SQM Research director Louis Christopher said drops in rent meant there were “leasing opportunities for tenants who have chosen to stay in town”.

Tenants may be starting to pick up on the chance to get a better deal, according to Finder.com.au.

It is still a good time for tenants to negotiate rent.

A recent Finder survey revealed 31 per cent of renters have moved or are considering moving during the pandemic.

Finder insights manager Graham Cooke said it was prime time for renters to negotiate a better deal.

“The reality is many Aussies are currently paying too much for their rent. If you’re in a position to move, now is the time to find a bargain,” he said.

Mr Cooke said those who didn’t want to move should consider asking for a rent reduction. He gave the following tips:

Assess your payment history: If you never miss a payment you’ll have better luck asking for a discount.

Compare rentals in your area: Check online for properties similar to yours in your suburb. If they’re being offered at a lower rent than you are paying, raise it with your real estate agent and use these listings as evidence for your claim.

Know your credit score: If you’ve got a good credit score that can help. Your landlord should be more enthusiastic about keeping you, and if not you have a higher chance of being accepted at a different property

Be polite: Most landlords in Australia are also paying off mortgages. If you want to maintain a strong relationship with your landlord it’s important to be gentle but firm with your case.

The post Rental vacancies ease across Sydney as landlords cut rents to attract tenants appeared first on realestate.com.au.

Hawks captain Ben Stratton (right) has sold his Fitzroy home in an off-field victory. Picture: Mark Dadswell

Outgoing Hawks captain Ben Stratton has sold his stylish Fitzroy home while calling time on his decorated football career.

The three-time premiership star sold his stylish warehouse conversion at 75 Palmer Street just two weeks before announcing his retirement from AFL.

Stratton previously hinted to the Herald Sun his next move could be to “head west”, sparking speculation the defender may move back to home state Western Australia.

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Ben Stratton has called time on his career at Hawthorn. Picture: James Elsby

75 Palmer St, Fitzroy was sold by Stratton in September.

The 31-year-old was raised in Dunsborough and played for the WAFL’s East Perth before being recruited by the Hawks as a mature age pick in 2009.

Nelson Alexander Fitzroy agent Mark Verrochi confirmed the two-bedroom pad sold close to the $1.55m asking price.

He said it was likely Stratton’s next property would be in WA.

Inside the swish warehouse conversion.

Modern features add plenty of flair.

“I know he wanted to move more beachside, and while I’m not entirely sure it was WA, I can only assume,” Mr Verrochi said.

“I’m not sure if Stratton had made the decision to retire when he first listed the home for sale.”

The warehouse conversion, where Stratton and his fiancee Laura Griffin lived, was first listed in June, before passing in on a vendor bid at an online auction in July.

Mr Verrochi said it was eventually snapped up by a notable artist who divided his time between Los Angeles and Melbourne.

Stratton with fiancee Laura Griffin at the 2019 Brownlow Medal ceremony. Picture: AAP Image/Julian Smith

A spiral staircase and fireplace are stand out features.

“He loved the warehouse feel of it, which he can really put his own spin on,” Mr Verrochi said.

“The first thing he loved was the cathedral ceilings and how it was so spacious and light filled.”

The artist had the opportunity to physically inspect the property early in the campaign, before a ban on private inspections began.

A rear deck was perfect for entertaining.

There are two bedrooms inside the warehouse conversion.

Stratton told the Herald Sun the property had been “perfect for entertaining”, with a large open-plan living room and a deck at the rear.

“It was perfect, we had everything at our front door – so many local watering holes and favourite brekky places,” Stratton said.

“It was pretty special having Carlton Gardens in our backyard.”

The property was snapped up by a notable artist.

There are two bathrooms.

The couple added a huge bi-fold door leading to the deck, concrete floors and exposed a brick wall during their five-year stint at the property.

They bought it for $1.295m in 2015, according to CoreLogic.

Stratton announced his retirement from Hawthorn on Monday, after racking up 201 games across a 10-year career.

Stratton won three premierships with the Hawks. Picture: Colleen Petch

He starred in the club’s premiership three-peat from 2013 to 2015 and was made captain for his last two seasons.

He is hanging up the boots at the same time as teammate Paul Puopolo.

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The post Ben Stratton: Retiring Hawthorn captain sells Fitzroy warehouse conversion appeared first on realestate.com.au.