In the past month, most properties returned to Market by Silver Service have relet for higher than their established value. Two examples are as follows:
A near new two-bedroom two-bathroom apartment in Brunswick relet for just under 10% more than its established value with no required changes or improvement by the Landlord.
Due to necessary major insurance works, a three-bedroom 2.5-bathroom townhouse in Port Melbourne had a two-month hiatus from the Market. Now renewed, it has relet for just over 11% more than the last achieved rental.
Why though is an increase not always achievable? Simply, this is because The Market has not always improved or is yet to place an increased value on the property or area under review. Over supply/decreased demand significantly affect Market Value. Sometimes too, an area falls “out of favour” with The Market. At present, properties along St Kilda Road have lost some favour due to the major Metro Tunnel works that have commenced and, the promise of increased noise disturbance and traffic congestion for an approx. 5-year period.