Property Management Winter Lull

As my favorite TV show would say “winter is coming” or more precisely winter is well and truly upon us. We are experiencing a very unseasonably tough rental market at the moment.

Normally we do experience seasonal fluctuations in the rental demand with the normal tenant demand around this time of year at its lowest, being the mid year and the winter period. This is mainly due to less motivation by tenants to move during this time, and it’s less likely for work transfers, and parents from other areas are less likely to disrupt their children’s schooling. The opposite is also the case as we see the rental market peak in the summer months mainly January, February and into March before or close to the new school year commencing and work transfers at its height.

So why are we experiencing an even tougher then usual rental market?

Well, it’s the double edge sword effect. We have had a very active sales market with many both in town and out of town investment buyers securing large quantities of property throughout the area to lease out. The problem is, we have had many of these sold properties transfer ownership over the past few months, effectively flooding the rental market with similar stock creating an unusual oversupply of rental properties. To demonstrate this tough market, we would usually expect for this time of the year to have around 60 houses available for lease throughout town. At present there are 110 homes currently available to lease. Almost double the rental homes. This oversupply, although we are not expecting to last long term, is causing rent to drop on the short term with many properties dropping by $20 per week on average to attract tenants. The obvious issue is vacant investment which won’t help pay the mortgage and continuing to advertise a property for lease at an above market rent will just ensure the property stays vacant for longer.

Another worrying trend we have noticed with brand new properties rented through particular agents working with development groups, they seem to be purposely leasing these properties well under what should be true market value for these properties. The reasons remain unclear but may be to lower the investment return for tax purposes or even to make them lease easier for the agency? Either way this has caused issues for brand new and near new rental properties, dragging the rents down and being leased slower than normal.

Our Advise

If you are looking to lease a new purchase or currently have your rental  property advertised for lease and not getting any results, contact our property management team on 6584 6400 for a no obligation assessment of the current market rent and advise if your agent is costing you money preventing your property from being leased.


Jason Partridge

0407 009 226
02 6584 6400

Port Macquarie Real Estate