VIC Rental demand SE suburb Melbourne

Can anyone in the know please give me an idea of what's happening in the rental market. My 3BR townhouse rental in Knox area has been listed for nearly 8 weeks. My last rent was $400 and I started at $420 in early Oct and have dropped it to $395. My leasing agent keeps pushing me to drop the price and now suggests $370. Is the market really slow, competitive or just bad timing?

 

Timing is OK as winter is the hardest time. Oversupply of Units/Townhouse in those areas as many big blocks have been developed into multi-building blocks and councils have encouraged this especially on main roads. Also in relative cheap areas some builders build to rent thus the continuous increase in supply.

Tenants prefer to live in shiny new things unless there is a big price differential. Has there been many applicants? Dropping the rent is what I'd do but I would do it at random times and amounts so it doesn't look like a countdown

 

Thanks for your thoughts! There have been dribs and drabs, average of about 2 viewing the place in the twice a week openings. There have been only 2 solid applicants, one pulled out after viewing the place. I have looked at the ads for the area and find my price still competitive and I don't really see a heap of new properties for rent so I'm not sure why it's taking so long to get it rented out.