What scenarios can push melbourne CBD rental prices down? (other than oversupply)

Discussion in 'Investment Strategy' started by masterjoe91, 7th Jun, 2018.

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  1. masterjoe91

    masterjoe91 Member

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    What scenarios can push Melbourne CBD rental prices down? (other than oversupply)

    I can't think of any other reasons why rental prices would come down?
     
    masterjoe91, 7th Jun, 2018
    #1
  2. thatbum

    thatbum Well-Known Member

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    Less demand?
     
    thatbum, 7th Jun, 2018
    #2
  3. WellKnow

    WellKnow Well-Known Member

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    What thatbum ^^ said.. less people looking for rentals drops the price down.
     
    WellKnow, 7th Jun, 2018
    #3
  4. The Y-man

    The Y-man Moderator Staff Member

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    The Gov makes PTV free across the entire metro area, developers convert their 20 story 1BR apartment complex on A'Beckett st into car parks, etc....
     
    The Y-man, 7th Jun, 2018
    #4
  5. hobartchic

    hobartchic Well-Known Member

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    Lower family tax benefits; higher unemployment; more families focussed on saving and willing to make changes to achieve savings goals.
     
    hobartchic, 7th Jun, 2018
    #5
  6. Trainee

    Trainee Well-Known Member

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    Crash in overseas student numbers?
     
    Trainee, 7th Jun, 2018
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  7. Marg4000

    Marg4000 Well-Known Member

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    The only criteria is supply and demand.

    Call it what you want - over supply or low demand, it is the same thing.

    Lots of rentals available = lower asking rental prices likely
    Balanced availability = steady prices, possible increases
    Few rentals available = rising rental prices.

    And demand can be seasonal. Always be careful of when leases end. If preferred, use an irregular lease period (8 or 10 months etc.) to avoid seeking tenants at an unpopular time. Your PM should know when the prime demand occurs for the area.
    Marg
     
    Marg4000, 8th Jun, 2018
    #7