Harcourts Move – August 2024 Update

Hello and welcome to our August Newsletter for 2024, and I hope this email finds you warm and cosy as the temperatures dip outside.

There has been a lot of media about the Australian housing market and here is the latest update from Tim Lawless

With one month to go until the ‘spring selling season’ which is generally a time where more properties come onto the market compared to other times of the year. If you are thinking of selling, get in touch with Christina Guirguis on 0481172556 or click on this link to complete the appraisal form, and our team will be in touch to discuss your options. 

Short Term Rentals Update

As the travel and accommodation sector starts to move out of the ‘winter slump’, the team at MadeComfy is gearing up for the upcoming shoulder and peak seasons.

According to the latest data, on average, MadeComfy customers achieved 25% higher returns in July compared to June or May, matching returns from July 2023. This marks the end of the low season for most short-term rental markets in Australia.

September and October bookings are already trending ahead of July 2024 at the same point in time, indicating a strong trend back into the shoulder and high season.

With the second half of the year approaching, we expect to see some seasonal records broken in the coming months, and with customers achieved net returns on average 33% higher in 2023 compared to long-term rentals (LTR) this might be a great opportunity for long term rental investors to consider moving into the short term rentals market.

As we move out of the low season, here are a few things to consider in preparation for the move into the high season.

Is Your Property Ready?

Ensure your property is equipped with the comfort, style, and features that attract guests willing to pay a premium. During the high season, guests are often less price-sensitive and seek the best experiences.

Maximise Availability

Avoid blocking your calendar. Keeping your property available during high season not only increases booking opportunities at higher rates but also boosts your visibility and ranking on booking platforms.

Eliminate revenue-impacting restrictions

Avoid imposing pricing or length-of-stay restrictions. Our revenue management experts tailor strategies based on market trends and competition, helping you maximise your income. Restrictions can lead to missed opportunities, allowing competitors to capture your market share.

Plan for High-Season Returns

High season is crucial for boosting your property’s overall performance. Use the increased revenue to cover mortgage and operating costs, setting the stage for a successful low season. Proper planning can expedite mortgage repayments or fund your next high-yield property investment. Avoid the common pitfall of exiting the market during the off-season and missing out on potential earnings.

In case you missed it, MadeComfy changed their Airbnb cancellation policy from moderate to non-refundable, offering a firm cancellation policy at a 10% premium. The good news is that this adjustment reduced the number of cancellations as expected, and did not impact booking conversions. 

They are also currently optimising the performance of listings on Booking.com, one of their primary booking partners and will be introducing key changes such as changing the cancellation policy to ‘Firm’, allowing for non-refundable bookings for a 10% discount, long-stay discounts to encourage higher occupancy rates, weekly and monthly discounts.

Personally, I’m really pleased that our relationship with MadeComfydelivers the best possible outcome for our clients so please reach out if you have any questions at all about how your investment property can gain the maximum potential return.

Please get in touch with Andrea Motto on 0413395366 to find out how moving your long term rental to short term could work for you.

Have you been to the Art of Banksy exhibition yet? Don’t miss it, and check into some of these great properties for your city mini-break and enjoy the magic of Melbourne in August! 

Incredible City Views in Convenient CBD Apartment

Sophisticated 2-Bed by St Kilda Botanical Gardens

Fun and Cheeky 70s Styled City Apartment

Spacious CDB 2-Bed by Albert & Fawkner Park

Bespoke 2-Bed Beachfront Apartment

Bayside Apartment Living Close to the Beach

Property Management Update

Rental vacancy rates are seeing a slight increase with a few more long term rental properties on the market than in previous months. As we move towards the end of the year, we expect the vacancy rate to decline. View our current long term rentals here and if you are looking for tips for building a high-return investment property, read the article in full here.

As always if you have any questions please feel free to reach out to me.

Property Sales Update

The PropTrack Home Price Index for July 2024 shows that national home prices increased 0.08% in July, to be 6.3% higher than a year ago. This slower pace of growth is to be expected in July, as it displays the slowest monthly growth on average.

Combined capital cities have increased 6.6% over the past year and continue to outpace regional markets, which recorded a first monthly price fall in July (-0.12%) since late 2022.

In Melbourne however, prices recorded a fourth consecutive month of price falls, but prices are down just 1.5% over that period. The fall in July was a modest -0.21% but prices are now back to the level they first hit in August 2021. This broad price stability has helped buyer and seller confidence in Melbourne, with new property listings in June up 9.1% year-on-year. You can read more here.

My team and I are always using the most up to date data when it comes to making decisions around investment properties and appraising properties for sale. If you’d like to know how to make the most of property data, read more here. 

You can also read this article on how to save money when selling your property.

Looking for a new investment property?

We have a stunning 1 bedroom apartment on St Kilda Road for sale by expressions of interest. Located at 603/3-5 St Kilda Road, this luxurious and convenient apartment offers a great opportunity for investors with an amazing outlook combined with a pool, gym and onsite parking and the vibrant lifestyle and beach of St Kilda right at the door. 

Expressions of interest close on August 21, so make sure to book a time with Christina to inspect this great apartment – perhaps it might be a great option for a family member or friend as their first home?

23 Nuttal Street is a pristine residence nestled in the heart of Mambourin, where contemporary living meets convenience. This charming property, an ideal find for first home buyers, astute downsizers, or the savvy investors, boasts an efficient use of space without compromising style or comfort.

If you would like to know more about these properties please get  in touch with Christina on 0481172556 who can help you with any questions about these great opportunities. 

I hope you have enjoyed this month’s newsletter and I thank you for being part of the Harcourts Move team. 

My team and I are always here to help and if you have any questions please don’t hesitate to get in touch.

Until next time, stay connected.

Sadhana and the Harcourts Move Team