Tenant demand remained strong through July, with leasing activity rising and rents holding firm across all property types. At the same time, changes to rental legislation are now impacting how owners assess new applications, with a greater focus on tenant quality and reduced flexibility around lease terminations.
Leasing Trends and Market Activity
Chidiac Realty leased 42 properties in July, including 33 in Wentworth Point, bringing the year-to-date total to 256. Of the 119 properties leased in Wentworth Point, Chidiac held a 21% market share.
There were 114 new rental listings in Wentworth Point for the month, with Chidiac listing 19.5% of them.
Days on Market
Our properties continued to lease significantly faster than the local average:
- Chidiac average: 14 days
- Wentworth Point suburb average: 29 days
Despite a modest increase in leasing time for Chidiac, our properties still leased more than twice as fast as the suburb average.
Rental Rates and Market Performance
- 1-bedroom: $666/week
- 2-bedroom: $805/week
- 3-bedroom: $1,100/week
Notable lease: A unique four-bedroom apartment in Wentworth Point leased for $1,550/week in just 10 days, highlighting the demand for premium properties.
Tenant Turnover and Relets
27 relets in July, accounting for 65% of our leasing activity.
While relets were the dominant driver of leasing activity, this figure is down 4% year-on-year, reflecting the longer stays brought on by current tenancy legislation.
Market Insights
Tenant enquiry levels were strong in early July, particularly among students. However, application strength remains mixed, with many applicants presenting higher affordability ratios and limited rental history.
With the abolishment of no-grounds terminations, it's now more important than ever for landlords to be firm on tenant quality. Shorter lease terms no longer provide the flexibility they once did, as owners still require valid grounds to end a tenancy.
These legislative changes may bring longer-term benefits, with reduced tenant turnover, lower vacancy periods, and fewer transactional costs for landlords.
Rental prices remain resilient across the board, with no signs of a slowdown in market strength as we move through winter.
