Market Wrap Investor Insight
April 2021
Contents 5. Welcome 6. Legislation Update 6. Feature Article 10. Notable Rentals 47 Berry Street, East Melbourne 18 Toorak Avenue, Toorak 27 McArthur Street, Malvern 492 Toorak Road, Toorak 2/62 Heyington Place, Toorak 33 Molesworth Street, Prahran 5/284 Williams Road, Toorak 4a Canberra Road, Toorak
24. Feature Properties for Lease 55 Closeburn Avenue, Prahran 13 Winifred Crescent, Toorak 1902/250 St Kilda Road, Southbank 8/717 Toorak Road, Kooyong
Your Property Management Team
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April 2021
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Welcome
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April 2021
Investor Insight Welcome to the first edition of our Property Management Market Wrap for 2021. In this issue we will take you through an update of the property market from an investor stand point, review the recent legal reforms and share a selection of our notable rentals over the last quarter. Over the past few months at RT Edgar, Toorak have had the opportunity to assess the impact of last year’s extraordinary events on the residential rental property sector and it is clear that the fall-out from the COVID-19 pandemic will continue to provide challenging conditions for some rental providers in the short to medium term. Overall, the local residential rental market has stabilised to an extent. Current rental vacancies are sitting at 4.7 per cent as at February 2021, which marks a significant increase when compared to the same time last year when the vacancy rate was only 1.6 per cent. However, in our local area we have seen a reduction in the number of available properties for lease and a levelling out of rental vacancies. Generally, houses are more attractive to renters. These properties are moving quite readily and are mostly maintaining current rental levels. We have also noticed a trend for renters to opt for share housing arrangements rather than apartment living which is contributing to the oversupply of apartments. Data from Domain indicates that while the number of vacant rental listings has fallen significantly in most capital cities, the rental markets in both Melbourne and Sydney are still being adversely impacted by closed borders and the lack of international students, the result being that many inner-city apartments remain without tenants. Melbourne in fact has recorded the biggest proportion of empty rental properties in Australia, with the inner city, Stonnington and Boroondara areas being amongst the hardest hit by the rise in vacant rentals. Currently, there is a significant surplus of one bedroom apartments, in particular at the lower priced end of the market. Of those apartments that are being let, many are showing rent decreases of between 10-25% in order to secure a new tenant due to this oversupply. Unfortunately, it seems likely that this will remain a feature of this sector of the market, at least until such time as immigration levels to the State increase. The news though is not all bad. We have noticed a big upswing in rental enquiries following the announcement by the Government that workers could return to their workplaces at 100 per cent capacity and this has been a significant move toward reducing vacancy rates. Return on investment in residential property has always been a long term proposition and so for patient rental providers, we have some confidence that any reduced supply is likely to see a substantial rise in rent levels in the longer term. Additionally, Melbourne’s vacancy rate has decreased from the COVID-19 induced peak, indicating that the worst is behind for rental providers. 5
Legislation Update
Reforms to the Residential Tenancy Act As we have previously advised all our rental providers, a number of reforms to the Residential Tenancies Act, came into effect on 29 March 2021. The reforms have been introduced by the State Government with the objective of ensuring a “fairer, safer system” for renters and rental providers. While the implementation of these changes does impose some quite stringent new requirements on rental providers, there are also benefits for property owners, including greater clarity around the responsibilities of renters to maintain rental properties and more straightforward avenues of redress where there are problems, specifically in relation to repeated late or non-payment of rent. Many of the more significant changes, notably those relating to minimum prescribed energy ratings for all appliances and fixtures do not come into effect until March 2023, so there is ample time for rental providers to make whatever changes are required to ensure compliance with the new standards. Please visit the link on the opposite page outlining the substantial changes in greater detail.
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April 2021
Most of our rental providers are already well positioned to meet these new standards and obligations however there is the possibility that, for some, the changes may impose a financial burden to ensure compliance. Hopefully, this will not have a knock on effect of reducing the supply of rental accommodation which may be the consequence of renter providers opting to exit the investment market due to reduced rentals, greater maintenance expenses and potentially lower returns on investment in the short term. Although it is early days, so far the transition to the new arrangements has been relatively smooth. Since the reforms were first proposed we have consulted broadly across the industry and have been working hard to ensure that our property management team and our processes and systems are prepared and that we are fully able to support and advise our clients in relation to managing their investment properties and to ensure that the new operating environment is “business as usual” from the outset. If you have any concerns about how these changes may impact you, or the management of your investment property please don’t hesitate to get in touch with our Property Management team.
VIEW MORE INFORMATION REGARDING RENTAL REFORMS
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Feature Article
Nurturing Young Talent Investing in the Future Real estate has always been a highly competitive industry, certainly not a career for the feint hearted. Long term success demands a high degree of resilience, determination and a commitment to weathering the cyclical highs and lows that have always been a feature of the property market. Across all aspects of our business, from sales to leasing, property management to marketing, RT Edgar has invested in attracting, developing and retaining young staff with passion, energy, talent and a determination to succeed. We want people who want to be part of a team, and importantly who want to be part of the RT Edgar team. “Identifying, engaging and nurturing young talent at all levels is extremely important for the longevity of our business,” says Warwick Anderson, Director RT Edgar. “It’s not just about finding and nurturing our future leaders; it’s about identifying high-potential employees and working with them to grow their strengths and abilities. Two of the greatest supports leaders can provide for their employees are professional development opportunities and time. Young professionals must have the opportunity to work closely with those in leadership positions as an essential part of their career development.” The directors of RT Edgar Toorak all agree that finding a good mentor is really important and each is equally committed to hiring young professionals with potential to grow with the firm. They believe a core value of the business is encouraging new staff to find their passion in real estate. 8
April 2021 Our Toorak directors are also strong believers in the value of education as a solid foundation for working in the profession, as well as having the ability to communicate well with clients and colleagues, to maintain professionalism whilst still being approachable and social, and of course having profound knowledge of the laws and regulations relating to the renting and selling process. For those considering real estate as a career, our directors provide the following advice; Firstly, Warwick and Director, Jeremy Fox recommend that newcomers start in the property management division, and from there, learn how to negotiate, build a network, and develop the skills, knowledge and importantly the mindset essential for long term success. Both Warwick and Jeremy began their own careers in this way, and they are adamant that this laid the foundation for the decades of success they have since enjoyed. Directors, Mark Wridgway and Sarah Case, insist on mentoring new sales staff from the moment they start their careers with RT Edgar Toorak. Both Sarah and Mark work closely with their own teams of young sales consultants from the very outset, to guide their development and help them cultivate professional skills. Of particular importance, is teaching young professionals how to successfully conduct business in a challenging climate, where learning how to service buyers and vendors, create urgency on both sides and build long term relationships is paramount. We are thrilled to have such a diverse and proficient team at RT Edgar, and we are especially proud of the younger members of our team, who include Lachlan Fox, our leasing consultant. Lachlan followed his father’s advice, starting his real estate career in the rental department. As well as Jack Edgar and Will Hocking, whose families have decades of history in the real estate profession. Both began their careers in sales where they have been mentored by directors and experienced agents. With this encouragement and example Jack and Will have both flourished. We are pleased to be able to introduce you to some of the fine young professionals we have working with us at RT Edgar Toorak, and we encourage anyone considering a career in real estate to get in touch with us.
Lachlan Fox | Leasing Consultant 0419 833 768
Julian Standish | Business Development Manager VISIT WEBSITE 0435 038 189
Jack Edgar | Sales Consultant
Will Hocking | Sales Consultant
0428 222 430
0451 065 565
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Notable Sales Rentals of 2020
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47 Berry Street, East Melbourne Modern Home Surrounded By Parkland This contemporary home nestled discreetly within a leafy street and surrounded by beautiful parklands in one of East Melbourne’s most soughtafter streets. Featuring wide hallways, impressive formal dining room, a large open plan kitchen with informal meals area, spacious family room opening out to lovely private courtyard. Upstairs offers a second oversized living zone opening out to sun drenched roof top entertaining terrace, 3 excellent sized bedrooms (master with two walk-in robes and a stylish ensuite) , family sized bathroom, study area, separate laundry. Other features include, spotted gum timber flooring, double glazing, heating and cooling throughout, guest powder room and private garaging for 2 cars. All within moment’s walk to the MCG, CBD and Treasury Gardens and all forms of public transport. Leased for $1,950 per week. VIEW PROPERTY
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Notable Sales Rentals of 2020
18 Toorak Avenue, Toorak Beautifully presented single level residence Elevated, private and secure, beautifully presented, light-filled single level residence with north-west aspect situated within short walk to Kooyong Village shops and restaurants, Kooyong Tennis club and Kooyong Station, on a spacious land allotment of 383m2approx. Comprising an elegant front entrance and stunning spacious formal lounge with gorgeous original open fireplace. A large open plan gourmey kitchen leads to a casual dining area and informal sitting room which flows into a private north facing terrace. An adjacent third bedroom or study, as well as two further bedrooms, both complete with ensuites, a separate laundry room, and double lock up garage. The perfect elegant family residence. Leased for $1,495 per week.
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April 2021
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Notable Rentals
27 McArthur Street, Malvern Marvellous Malvern Living A corner location in one of Malvern’s finest settings ensures this prominent, elegant residence receives abundant northern light throughout a series of impressive dual level dimensions. Living and dining spaces that are perpetually bright and inviting enjoy a paved northerly courtyard and an open-plan kitchen equipped with Miele appliances and stone benches. Above, the allure is heightened, literally, as a substantial study/retreat is surrounded by three double bedrooms and two bathrooms, including the main bedroom’s stylish ensuite. Video security. Internally accessed garage. Moments from Malvern’s best cafes, tram routes and Glenferrie Road - and charming McArthur Street Park. Leased for $1,195 per week.
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April 2021
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492 Toorak Road, Toorak Spacious and Light Filled, Art Deco Residence. This solid brick Art Deco residence on the edge of Toorak Village suggest a myriad of exciting living space. It offers scope to convert into a substantial family home, freshly painted and with carpet throughout the property, with a formal dining, large spacious kitchen and light-filled living/dining room. The main bedroom with built in robe is complemented by 4-5 extra bedrooms throughout. With many possible rooms available to make a very comfortable living accommodation opening to the large private garden. Perfect to live in for a family or a few friends who want a great property with lots of extra space. Leased for $1,140 per week.
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Notable Rentals
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2/62 Heyington Place, Toorak Charming 3 Bedroom Town Residence The ultimate in single level living, this elegant Georgian style town residence with plunge pool and courtyards offers the ideal Toorak lifestyle. Featuring: Secure entry, formal living flowing to dining and study orientated to courtyards, granite kitchen, master bedroom with luxurious dressing room and bathroom, 2nd bedroom and bathroom and a fantastic separate self contained apartment and double garage with direct access and abundant storage. Leased for $1,108 per week.
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April 2021
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33 Molesworth Street, Prahran Stunning Light Filled Contemporary Town Residence Stunning, light filled contemporary town residence overlooking Orrong Romanis Reserve opening to private north facing rear terrace and courtyard garden, situated within short walk to Hawksburn Village, Beatty Avenue shops, restaurants, cafes and transport. Comprising formal lounge, kitchen meals, informal sitting opening to north facing terrace and garden. Upstairs three bedrooms, two with ensuite bathrooms and built in robes, family bathroom and off-street parking for one car via ROW. Leased for $1,085 per week.
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Notable Rentals
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5/284 Williams Road, Toorak Sensational Art Deco Town Residence Sensational 4 bedroom north facing art deco loft style town residence in a boutique block of only 6 set in landscaped garden surrounds conveniently located close to fashionable Toorak Village shops, restaurants, cafes, Melbourne’s top schools, Como Park and public transport. Comprising: security entrance, powder room, lounge with open fire place, separate dining with open fire place, modern kitchen with integrated refrigerator and walk in pantry, expansive master suite with parent’s retreat, cathedral ceilings, walk in robe and ensuite, 3 additional bedrooms (one with open fire place, built in robes and ensuite) and main bathroom/laundry. Including hydronic heating, reverse cycle heating/cooling, original art deco features, abundant storage, single car garage and off street parking for one additional vehicle. Leased for $1,020 per week. 18
April 2021
4A Canberra Road, Toorak Three Bedroom Residence, with Spectacular Entertainers Courtyard Enviably positioned in Melbourne’s premier suburb, this bright, free-standing residence offers an enticing profile supported by its large living spaces. Downstairs, surrounded by two lovely private courtyards, comprises granite kitchen with walk-in pantry, accompanied by separate dining room and generous everyday living/meals areas. Upstairs showcases three bedrooms with built in robes, including a master bedroom with en suite. A separate laundry and double lockup garage completes the home that is in close proximity to Como Park, Yarra Trail, Chapel St and Toorak village shops and boutiques. This unique offering is not to be missed. Leased for $910 per week.
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Notable Properties Feature Sales of 2020 - For Rent
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April 2021 Issue 8
55 Closeburn Avenue, Prahran Sophisticated Town Residence The epitome of contemporary sophistication and seamless indoor-outdoor entertaining, this luxuriously appointed and flawlessly finished residence is sure to impress. Featuring two well-proportioned bedrooms with two gleaming bathrooms designed by multi-award winning architect, Travis Walton - this home promises a lifestyle of indulgence in the vibrant heart of Prahran. The open-plan living and dining domain with stunning feature marble entertainment unit, is primed for relaxation or entertaining. Full height double stacker sliding doors open the space out to an alfresco deck for brilliant indoor-outdoor living. A gourmet kitchen flawlessly blends function and design featuring Miele oven and gas stove, integrated Fisher and Paykel fridge/freezer, Miele dishwasher and a generous walk in pantry. Up the glorious timber staircase with soaring ceilings the study nook on the upper level is stylish and practical with built-in desk and bookshelves. A long list of features includes security alarm, video intercom, keyless entry, reverse-cycle air conditioning, under-floor heating in the bathrooms, remote-controlled block out blinds and wool carpets. VIEW PROPERTY
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Feature Properties - For Rent
13 Winifred Crescent, Toorak Spacious and Light Filled Toorak Home This exceptional town residence has everything you’re after and more. Comprising of generous light filled spacious proportions this home is not to be missed. Features include a marble entrance hall and staircase, stunning parquetry flooring, formal lounge and dining room, separate study area opening to a generous balcony, perfectly appointed European kitchen equipped with breakfast bar, three roomy bedrooms - master bedroom with luxury ensuite and built in robes, a spacious double garage with internal access and a large terrace perfect for entertaining. Additional features include a low maintenance garden, spacious bathrooms, separate laundry, balcony, front courtyard and an alarm system. Perfectly situated in a highly sought after quiet location only a stone throw away from Toorak Village, an abundance of cafes, shops, restaurants and public transport. An inspection is a must!
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April 2021
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1902/250 St Kilda Road, Southbank THE Melburnian Sub Penthouse A majestic fully renovated two bedroom residence,in a luxurious sub penthouse format. The present day proportions are spectacular. The views are equally stunning. Huge north facing living, dining and breakfast areas and a large study space are complemented by terrace entertaining with the city, St Kilda Road, King’s Domain and the MCG providing a memorable backdrop while a kitchen featuring Miele appliances and stone surfaces serves in style. Both bedrooms, including a main bedroom with walk in robes and ensuite, enjoy access to a superb second terrace. A central bathroom completes superb proportions offering absolute privacy. One of only three on its floor, enhanced by all the facilities for which THE MELBURNIAN is renowned including; concierge, business center, pool, gym, residents garden and secure side by side parking for 2 cars, with storage cage.
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Notable Properties Feature Sales of 2020 - For Rent
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8/717 Toorak Road, Kooyong Stunning Penthouse Apartment This stunning three bedroom plus study luxury penthouse apartment has a great deal to offer. Three double bedrooms, each with their own ensuites and BIR’s/WIR’s, plus a separate study and spacious large open plan living and dining area over looking a private terrace with fantastic views. Fabulous gourmet kitchen with walk in pantry, marble waterfall benchtop, Miele stainless steel appliances, built in fridge and plenty of cupboard space as well as central powder room. Other features include lift access right into your lounge room, heating and cooling throughout, parking for 2 cars and storage. Located in a boutique development of only 8, this architecturally designed penthouse apartment, offers the finest of living in one of Melbourne’s prized locations and opposite Sir Robert Menzies Reserve. 24
Considering Selling?
April 2021
Record Sales Prices of 2020. We have achieved the highest sale prices in Inner City Melbourne for 2020. The prestige property market is flourishing as we experience the best selling conditions we have seen in almost a decade. Take advantage of this strong momentum and contact us today to plan for your potential sale.
Myvore Court TOORAK
Somers Avenue MALVERN
George Street EAST MELBOURNE
Finch Street MALVERN EAST
Murray Street PRAHRAN
Erin Street RICHMOND
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Your Property Management Team
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April 2021
As the agency consistently selected to lease and sell many of Stonnington and East Melbourne’s most beautiful and notable homes, RT Edgar is proud to continue to service our clients after what has been the most challenging year. We have started 2021 with some terrific property results at both a sales and rental level. With market confidence returning and tenant numbers growing stronger daily, this year is expected to bring excellent opportunities in prestige real estate. If you’re looking to capitalise on the current market’s momentum, have queries about any of our notable leases or would like an up to date appraisal on the potential rental value of your home, please feel free to contact us. Best wishes, RT Edgar - Melbourne’s leading name in prestige real estate.
03 9826 1000 rtedgar@rtedgar.com.au 10 Wallace Avenue, Toorak rtedgar.com
VISIT OUR WEBSITE
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Exceptional Homes Deserve Exceptional Service
rtedgar.com 10 Wallace Avenue, Toorak