Bendigo’s house rental prices have risen by 6.7 percent in the past year, a hike which agents say has been caused by sharply rising property values and a competitive market.
Domain has reported that median house rental prices rose by an average of $20 per week in Greater Bendigo between December 2017 and 2018.
Business development manager for Luke Goggin Real Estate James Cassar attributed the spike in rents to a competitive market.
Mr Cassar said a number of factors were driving increased demand for rental property, with more people competing for existing stock.
Capital investment, including works such as the Napier Street upgrade, brought people to the city, he said.
He also believed that a decline in Melbourne’s property market meant more investors were looking to buy regionally.
Mr Cassar said people were offering higher rents to obtain a lease because of the demand.
The agency listed a property on Friday at 5.30pm, and by Monday morning had 11 enquiries.
“Really this is all part of the sharp growth that Bendigo is experiencing in the property market,” Mr Cassar said.
“The property values are rising sharply in Bendigo as well.
“It’s become a very attractive place for both investors and people to come and live outside the big cities.”
Large houses, with more than four bedrooms, and single person properties were most sought after.
Domain reported that prices rose by 4 percent for units in Greater Bendigo during 2018, leaving renters paying an average of $10 more per week.
The median sale price for a house in central Bendigo over the past 12 months was $389,000, a drop of 2.7 percent.
Since 2001 the median house price has more than tripled, rising from $117,750 in 2001. The median sale price peaked in 2016 at $405,000.
Rental yields have increased by 3.7 percent in central Bendigo in the past 12 months.
Mr Cassar said renters were beginning to feel the effect of more competition for available rental stock.
It meant that people with an “so-so” rental history were likely to miss out when applying for properties.
“The rental market is moving sharply upwards... we're seeing rent rises across the board,” Mr Cassar said.
“The population is starting to feel it, they’re getting frustrated because they can’t find rental properties.”
Mr Cassar believed rents would continue to rise in Bendigo during 2019, but that housing availability for renters would improve as new developments were completed.
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