Uncertainty & Rental Reforms | November 2023 Market Update

And just like that Christmas is upon us and we are heading into the final month of 2023. November, like most months this year, has been an interesting one in our real estate world. An interest rate rise on Melbourne Cup Day at the start of the month led to a bit of uncertainty creeping back in and as a result we saw our general enquiry decrease as well as the number of attendees through our open homes. That said it’s still be a good selling month and we have achieved some excellent sales prices for our vendors. There has still been a steady flow of new stock coming to market and we expect that we will be making good sales right up until Christmas.

Our rental market saw a bit of a shift with our list of available properties growing significantly at the beginning of the month with plenty of tenants on the move. The rental demand however is quite strong with the majority of properties listed now being leased.

As some of you might be aware the NSW Government has proposed some significant rental reforms which were due to be released this year, it is now likely they will be released next year in 2024. These include;

  1. Abolishing no grounds termination notices and replacing with prescribed reasons for termination.
    Some of the obligations being placed on landlords and consequences, including the inability to re-lease a property for 6 months are concerning.
  1. Tenants rights to have pets
    Landlord must respond to the tenants request within 21 days. Pet applications being considered as part of the changes.
  2. Portable Bonds
    It is already in the Act that government can enact this, the question that remains to be answered is how it will work in a practical sense. Something to look forward to in 2024.
  3. Excessive Rent Increases
    We are all waiting to understand what the definition of Excessive Rent will be. Until that is released, it’s hard to understand what the full impact of this proposal may be. Another thing to look forward to in 2024.

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